Hello readers,
I recently attended the National Landlord Investment Show and one speaker that stood out was Kate Faulkner, who delivered some very interesting sessions covering UK property stats.
As the market is at a crossroads, keeping an eye on what the next five to ten years could bring is something I am acutely aware of needing to watch and I thought I’d share some of the insights that you should find helpful!
The first statistic I have found helpful to see is the cumulative projected house price increases and there are huge variations across the UK.
It’s interesting that Hamptons’ forecasts are so much lower than Savills and JLL but they do tend to take a more cautious stance on affordability pressures, higher interest rates, and the pace of recovery, particularly across London and the South.
| Region | Savills 5 Yr compound growth (Nov 25) | Hamptons 4 Yr Forecast (2025) | JLL 5 Yr Cumulative (Dec 25) |
| UK | 13.6% (£36,720) | 8.2% (£22,140) | 19.9% (£53,730) |
| London | 13.6% (£76,376) | 0.5% (£2,808) | 17.6% (£98,839) |
| South East | 17.0% (£64,900) | 3.0% (£11,453) | 19.3% (£73,681) |
| South West | 21.0% (£64,291) | 5.1% (£15,613) | 19.3% (£59,087) |
| East of England | 19.3% (£65,177) | 4.1% (£13,844) | 21.0% (£70,907) |
| East Midlands | 24.0% (£57,559) | 10.4% (£24,942) | 22.2% (£53,243) |
| West Midlands | 24.6% (£60,950) | 12.0% (£29,732) | 22.8% (£56,490) |
| North East | 28.8% (£47,141) | 16.4% (£26,844) | 20.5% (£33,555) |
| North West | 27.6% (£58,859) | 10.9% (£23,246) | 23.4% (£49,914) |
| Yorks & Humber | 28.8% (£59,229) | 12.5% (£25,707) | 22.2% (£45,651) |
| Wales | 27.6% (£57,733) | 10.4% (£21,755) | 23.4% (£48,948) |
| Scotland | 27.6% (£53,006) | 13.6% (£26,119) | 24.6% (£47,244) |
We are at a point with house prices (and probably very soon, rents) where house prices will underperform as affordability remains stretched and wage growth uneven. This is quite stark in the report, which shows how there is a shift in growth between the south and the north.
The graph below highlights this even more clearly, and you will see how the south is projecting to flatline over the next few years. This is, however, not necessarily a bad thing and the savvy investor will continue to make good returns.
Something that I am conscious of, however, is that whilst many investors are focusing on the higher-yielding northern regions, Medway continues to quietly strengthen its position as one of the South East’s more compelling long-term investment locations.
With average property prices continuing to be more affordable than much of the South East, the Medway Towns continue to benefit from strong rental demand, significant regeneration and direct high-speed rail links into London. In my view, this creates a strong balance between affordability, tenant demand and long-term growth potential.
The area has proven itself and will continue to do so in my opinion!
I’d be interested to hear your thoughts!
Hasan