Fresh research points to a quieter near term and a healthier medium term for UK housing. After a cautious start to 2025, Savills see roughly flat outcomes for the year, then a modest improvement into 2026. The bigger picture is more positive. Their five year outlook suggests a material rise by the end of the decade if financing and incomes hold steady. For investors and homebuyers, the message is to pick carefully and hold through the next turn. Sources: Savills residential forecasts hub and the mainstream market note dated 5 November 2025.
What the numbers suggest
The 2025 story is restraint. Activity stabilised through late summer and early autumn, yet buyers remain price sensitive. Savills highlight a five year outlook that totals about twenty two percent growth for mainstream values through 2029, with regional variation and sensitivity to funding costs. Volumes are expected to move back toward long run norms as confidence returns. That helps chains and supports liquidity in family sub markets. Sources: Savills mainstream market page and forecasts hub.
What this means for buyers
If you need to move, plan around financing windows rather than waiting for perfect timing. Fixed rates can improve for short periods when funding costs dip. Have documents ready and be prepared to lock quickly. On the ground, favour homes that photograph bright and live well. South or east light, practical storage and quiet bedrooms are simple markers for stronger resale later.
For value, look just beyond the obvious hotspots. In big cities, demand often spreads by micro location after public realm upgrades or transport changes. In suburbs, family homes within a short walk of a reliable station and good schools continue to attract deep buyer pools.
What this means for landlords
Rents remain firm in well connected locations where new supply is limited. If you are refinancing, stress test at a higher rate and include a realistic void. Keep insurance and service charge budgets under review. Where blocks run tight budgets, small increases in energy or staffing can change net yields. On operations, invest in comfort. Light, sound and simple storage reduce churn more than headline rent tweaks.
Choose stock that suits the next cycle. Good EPC, usable balconies and layouts with a natural desk spot rent faster. For houses, fabric first upgrades give the best winter return. Loft insulation, draught proofing and clear heating controls are simple wins.
Risks to watch
A cluster of completions in specific city cores can create short term incentives and softer top tick asking prices. Do not extrapolate that across an entire city. Watch the cost side. Insurance and service charges can erode net returns if not managed. Finally, rates still drive affordability. If global events push funding costs up, pricing could stall again. Keep buffers and avoid deals that only work on perfect assumptions.
The bottom line
Near term growth looks modest. The medium term path is constructive if you buy well and manage costs. Use quiet quarters to upgrade, refinance sensibly and position for the next leg of the cycle. Good homes in good places still win. The key is to be selective and patient.
Ethira Tip: When a forecast headline moves, read the method notes. Local supply, financing and income growth decide outcomes on your street, not the national average.
Sources
- Savills. The mainstream market. 5 Nov 2025: https://www.savills.co.uk/research_articles/229130/382246-0
- Savills. Residential market forecasts hub: https://www.savills.co.uk/insight-and-opinion/research-consultancy/residential-market-forecasts.aspx
- Savills. Mainstream residential forecasts 2026 to 2030: https://www.savills.co.uk/research_articles/229130/382244-0