House prices ‘to increase 20% by 2029’ says property giant
Property firm JLL predicts prices will rise by a fifth by 2029, spurred on by lower mortgage rates and supply restrictions.
House prices will jump 20% during the next five years as lower mortgage rates attract more buyers into the market.
That’s the bold prediction from property firm JLL, which also says a lack of supply of homes to buy will also add to upward pressure on prices.
Growth
“We expect growth of 19.9% nationally 2025-2029. London house prices are expected to increase by 21.6% over the same period, underpinned by a lack of new homes reaching the market for sale,” the company says.
“There are obviously a few months to go but we expect year end growth to come in marginally above our 2% forecast.”
JLL says Scotland and the north of England are expected to see the highest rises.
“Higher mortgage rates remained most challenging for more expensive markets in London and southern England, with growth in these regions, as forecast, lower than other areas of the UK this year.”
Rents up 17%
Tenants moving from rental to purchase a property will help to relieve the demand in the rental market, according to JLL. Rents are still forecast to be 17% higher by the end of 2029.
JLL forecast new housing starts across the UK will total 1 million between 2025 and 2029, meaning the Government will miss its target of 1.5 million.
And JLL predicts more landlords will leave the market after last week’s Budget and the increase of 2% in Stamp Duty. “We expect this will mean more traditional buy-to-let landlords will leave the market than enter over the next five years.”
