The regional breakdown also shows some significant differences from the previous forecast.
The North West is now at the top of the table with projected growth of 4% this year and 28.8% in the five years to 2028 – considerably higher than the UK average. This is also substantially higher than the region’s previous forecast of 20.2%.
| Mainstream Capital Value Forecast – 5 Years to 2028 | North East | Wales | North West | Scotland | South East | London |
|---|---|---|---|---|---|---|
| Previous Forecast | 21.4% | 21.4% | 20.2% | 20.2% | 16.7% | 13.9% |
| Revised Forecast | 25.2% | 26.4% | 28.8% | 25.8% | 18.2% | 14.2% |
Source: Savills Residential Market Forecast, Nov 2023 and May 2024
The North-South divide is still evident, with northern regions displaying higher growth predictions than the southern areas. Savills believes that northern regions, Wales, Scotland, and the Midlands will all experience growth of over 20% in the coming years, while Southern areas and the East of England will grow at a slower pace of less than 20%.
While London’s forecast has improved significantly from the former prediction of -4.0% negative growth in 2024 to positive growth of 2.0%, the longer-term growth is still believed to be slower than other regions. Therefore, London is still at the bottom of the table with 14.2% projected growth leading to 2028, only up marginally from the previous forecast of 13.9%. Buy-to-let in London has historically been a popular investment choice but has recently become less appealing than in northern regions.
This means that the anticipated growth for the North West of 28.8% is more than double the figure for London, suggesting that this extreme North-South divide isn’t likely to diminish any time soon.
To learn more about the UK property market, take a look at some of our dedicated area guides, covering topics such as investment property available in Maidstone and Hartlepool investment properties.