International property company JLL has said it expects Greater London house prices to increase by 22% over the next 5-years, beating nationwide UK growth predictions of 20% over the same time span. The firm added that within those headline figures, it expected lower value markets to see stronger growth towards the beginning of the period, with more expensive markets like London and the South East outperforming in the second half.

JLL remarked on current stock scarcity and said that housing supply was likely to remain very constrained over the next five years, despite the government’s ambitious housebuilding targets. It was recently revealed that new affordable housing projects in London had dropped 88% – according to government data, 3,156 affordable housing builds began work across Greater London between April 2023 and March of this year, down from 26,386 starts in the previous 12 months. Meanwhile a consistent trajectory of lower mortgage rates is expected to bring buyers back to the market, underpinning growth in prices.

"It was recently revealed that new affordable housing projects in London had dropped 88% – according to government data"

Savills also offered their positive analysis of the direction of travel for the housing market into 2029. Their view is that the impact of upheavals like Brexit, the Covid pandemic and the change of UK government are now beginning to fade away, creating a ‘back to basics’ situation in the UK property market. Lucian Cook, Head of Residential Research, said: “House prices in the medium term will be dictated by the fundamentals of demand, supply and affordability. The direction of mortgage rates has been key to buyer decisions over the past two years, and decreased monthly mortgage costs are now feeding through into improved confidence amongst prospective buyers, prompting the moderate house price growth we have seen over the past few months. A steady improvement in affordability should allow for house price growth to gain momentum over the next couple of years.”