UK House Price Growth Forecast: Key Insights for Regents Property Investors

The UK property market continues to offer long-term opportunities for savvy investors, with Knight Frank forecasting house price growth of 2.5% in 2025, rising to 3% in 2026 and 3.5% in 2027. Although slightly more conservative than previous projections, the outlook remains positive, with an expected total rise of 19.3% over the next five years.

For buy-to-let landlords and strategic investors, this signals a window of opportunity—particularly in cities such as London, Manchester, and Birmingham, where tenant demand remains resilient and rental yields continue to strengthen.

Market Trends & Interest Rates: What You Need to Know

Recent fiscal policy updates have influenced interest rate expectations. According to Knight Frank’s Head of Research, Tom Bill, increased borrowing costs have applied short-term pressure on house prices. However, with inflation now on a downward trend, there’s growing anticipation that interest rates will stabilise or fall in the coming years—potentially making borrowing more affordable and boosting buyer confidence.

London Outlook: Steady Growth & Long-Term Potential

While Greater London is set to see 15.3% house price growth between 2025 and 2029, this is slightly lower than earlier forecasts. Prime Central London (PCL), a traditional magnet for overseas capital, continues to see slower movement due to recent tax changes affecting international buyers. However, demand remains solid, and the capital’s global appeal ensures long-term value retention.

Is 2025 the Right Time to Invest?

In short: yes, if you're planning for the long term. While some volatility may persist in the short term, the broader outlook remains strong. With robust rental demand and increasing rental yields across regional and capital city hotspots, the fundamentals remain attractive for well-researched buy-to-let investments.

At Regents Property, we focus on helping our clients identify and secure high-performing assets in high-demand locations. Our tailored property investment solutions are built to maximise returns and mitigate risk in all market conditions.

Invest with Confidence

The UK property market remains one of the most resilient and rewarding asset classes, especially when approached with the right strategy. Whether you're looking to expand your portfolio or make your first investment, now is the time to capitalise on future growth.

Contact Regents Property today to speak with our expert team and explore our latest buy-to-let opportunities.