The headline numbers
In June 2026 Savills revised its five-year mainstream forecast. It now expects UK house prices to rise by 18.5% between 2026 and 2030, after a dip of around 2% in 2026 as higher mortgage rates weigh on demand.
The regional picture is where the opportunity lies. Savills forecasts around 25% growth by 2030 in both the North West and Yorkshire & the Humber, around 19.7% in the West Midlands, and just 10.6% in London.
- North West (Manchester, Liverpool): about +25.0% to 2030
- Yorkshire & the Humber (Leeds): about +25.0% to 2030
- West Midlands (Birmingham): about +19.7% to 2030
- UK average: +18.5% · London: +10.6%
Why affordability drives the gap
When borrowing costs rise, the markets with the most headroom between local incomes and house prices hold up best. Northern and Midlands cities start from far lower price-to-income ratios than London and the South East, so buyers can still afford to move — and prices keep rising.
The same affordability supports rental yields. Lower purchase prices relative to local rents mean investors in these cities can earn more income per pound invested.
What it means for GCC investors
For investors whose capital is held in dollar-pegged currencies, a sterling asset in a high-growth region offers both diversification and income. Timing also matters: forecasts point to a slower 2026 followed by stronger growth from 2027, which can create attractive entry points.
Forecasts are estimates, not guarantees. The best results come from choosing the right micro-location and building within these regions — which is where careful sourcing matters most.
BPG provides property investment consultancy and coordinates regulated professionals. Mortgage and legal advice is provided by FCA-authorised brokers and SRA-regulated solicitors. Nothing on this website is financial, legal or tax advice. Property values and rental income can fall as well as rise; forecasts are not guarantees.