By Michael Duggins, Director – Taygate Capital
The UK housing market is set to experience significant growth, with house prices forecast to rise by 23.4% over the next five years, according to new research from Savills. By 2029, the average UK home value could reach £442,000—a potential increase of £84,000 from today. For property investors, understanding these trends is essential for positioning assets strategically to maximise returns.
Regional Property Growth and Investment Hotspots
Savills anticipates that the strongest price growth will be in the North West and North East regions, driven by affordability and ongoing regeneration projects. These areas are expected to outperform London and the South East, where higher entry costs and affordability constraints continue to limit buyer activity.
“Regional growth trends highlight the importance of localised strategies,” notes Michael Duggins, Director of Taygate Capital. “Investors should explore regions with favourable economic conditions and infrastructure developments. This can provide not only growth in capital values but also stability in rental demand.”
Easing Mortgage Rates and Mid-Market Buyer Demand
Mortgage rates are expected to ease gradually, which should improve buyer confidence and demand in the property market. By 2027, mid-market buyers are likely to play a more significant role, driven by improving affordability. However, first-time buyers still face challenges due to reduced government support schemes and high deposit requirements, which may create more opportunity for rental property investments targeting young professionals and families.
Investor Insight: As mortgage rates ease, consider investing in buy-to-let properties in high-demand areas appealing to mid-market renters. This can create a steady income stream with the potential for capital growth as buyer demand gradually strengthens.
Changes in the Buy-to-Let Market
The buy-to-let sector is also evolving. Tighter regulations and increased taxes on second homes are adding pressure on landlords, but demand for rental properties remains high in many areas. For investors willing to navigate these challenges, buy-to-let properties in rental hotspots may still offer compelling returns.
Preparing for Long-Term Opportunities in Property Investment
The long-term outlook for the UK property market remains promising, offering investors opportunities for substantial returns. “Property investors should focus on the fundamentals—location, demand, and economic resilience,” advises Duggins. “By capitalising on regional growth and adapting to market changes, they can secure investments that deliver both income and growth.”
