News release

House prices forecast to increase 20%

House prices are expected to rise by 20% in the next five years

November 05, 2024

Kat Blake

Senior Communications Manager
+44 (0)20 7087 5781

House prices are expected to rise by 20% in the next five years as lower mortgage rates bring buyers back to the market, according to JLL’s latest five-year forecasts.

The property services firm revised its forecasts for the 2025-2029 period in the wake of the chancellor’s Autumn Budget. It expects a lack of supply and more competitive mortgage rates to fuel house prices over the next five years, despite the government’s ambitions to accelerate housebuilding.

London house prices are expected to increase by 21.6% over the five-year period, underpinned by a lack of new homes reaching the market for sale.

JLL expects lower value markets to see stronger growth towards the beginning of the five-year forecast period, with more expensive markets outperforming as the rate cutting cycle persists into 2026 and 2027.

Rental prices will be 17% higher by the end of 2029, it predicts. Despite exceeding inflation and wage growth over the period, the business anticipates the increase in sales activity will lead to slower increases.

Marcus Dixon, director of residential research at JLL, said: “Despite jitters in the run-up to Labour’s first Budget in 14 years, the chancellor’s announcements last week have done little to budge our headline forecasts for the residential sales and rentals markets.

“Yet challenges persist. EPC C deadlines could see landlords offloading less efficient properties or removing them from the market for retrofitting and pushing rents up further, while the Renters Right Bill could limit growth in some markets and prompt landlords to exit.

“The government is right to set out ambitious targets to both bolster housebuilding and support renters. What’s needed now is a clear roadmap for coming good on its objectives.”


About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.