House Prices Set to Soar — Didn’t We Just Hear the Sky Was Falling?

Every week there’s another headline telling us Britain’s housing market is teetering on the brink. Buyers vanish! Sellers panic! London doomed!And yet, according to the latest Savills forecast, in The Times, average UK house price will rise 22% to £440,000 by 2030.

Wait, what? How can house prices be both “crashing” and “soaring” at the same time? OK 2030 is not imminent but it's not that far away either. Welcome to the wonderfully confusing world of British property.

Read the article in The Times

Apparently, the Market Has Decided to Take a Nap

Savills reckons the next two years will be, well… a bit meh. Prices are predicted to creep up only 2% in 2026, then finally stretch their legs in 2029 when they’ll apparently “shoot up” 5.5% in a single year.

So, while everyone else is arguing about tax reform, mortgage rates and who’s to blame for the cost-of-living crisis, the market is basically having a cuppa and a lie-down.

By 2030, though, it’ll be back with a vengeance. Average prices up 22%. Not bad for something that’s allegedly on its last legs.

London — The Drama Queen of Property

Of course, London always has to be different.

While regions like Yorkshire and the Humber are expected to climb nearly 29%, London is forecast to lag behind at around 13.6%. Cue the headlines: “Capital’s property market flatlines!”

But let’s be honest — London’s “slow” growth still involves six-figure postcodes, overseas demand, and queues for a one-bed in Clapham that rival Glastonbury ticket lines.

It’s not that London’s lost its charm. It’s just been slapped with every cost imaginable:

• Stamp duty that makes your eyes water

• The threat of a “mansion tax” for homes over £2 million

• Rumours of capital gains reform

• And let’s not forget the sheer joy of £5 oat lattes and £2,000/week rents for flats with “character” in Knightsbridge,

And yet people still want in. The allure of London is apparently stronger than we are realise.

Happiness, Taxes, and Other Fairy Tales

According to the ONS and a few global surveys, London doesn’t exactly top the happiness charts. Something about the cost of living, commuting, and endless drizzle might have something to do with it.

But maybe happiness is overrated, because the city’s magnetic pull isn’t fading. It’s expensive, stressful, and slightly damp, sure, but it’s also the global hub of culture, finance, fashion, education and “let’s grab a drink after work but not actually commit to plans.”

Try finding that mix anywhere else with English, as the language thrown in for good measure.

Why Buyers Still Bite

Here’s the funny thing: while social media predicts the housing apocalypse, mortgage lenders are quietly relaxing their rules — HSBC just started offering 6.5× income loans.

So much for the “no one can afford anything anymore” narrative.

The truth is, people will always want a piece of London. It’s not just about bricks and mortar, it’s legacy, lifestyle, and a badge of “I made it here.”And if you can find a home where the Wi-Fi works and you can swing a yoga mat, you’ve basically won the lottery.

Our Take at Smith & Ericsson

We get it — the headlines are confusing. Prices are “crashing,” “rising,” “frozen,” and “overheating” all at once.

But here’s what we actually see on the ground:

• Buyers are still buying. They just want value and clarity.

• Sellers are still selling. They just want honest advice, not hysteria.

• London is still London. It still makes people fall in love, lose their minds, and remortgage in equal measure.

So yes, London might be the diva of the property world. Temperamental, demanding, but utterly irresistible. but at least we are not in NYC right now! Good luck with that!

And come 2030, when the UK average house price hits £440,000, we’ll all look back and laugh at how “dead” the market supposedly was.

Thinking of buying, selling, or just curious how your property fits into the chaos?Get in touch. At Smith & Ericsson, we’ve seen every mood swing this market has to offer — and we’re still smiling.

Smith & Ericsson is part of The London Broker Network.