Savills 2030 Forecast: How Regional Growth Could Affect Your Property Investments

Good morning,

London is not where the money is made anymore.

And Savills just proved it.

If you are still investing based on old assumptions, the next five years will leave you behind.

If you invest in property or plan to, this might be the most important five minute read of your week.

Savills just released a forecast that could reshape your entire strategy. Here’s what you need to know before making your next move.

Let’s dive in.

In this newsletter, you'll find...

• This Week’s Biggest News…….

• Savills 2030 Forecast: How Regional Growth Could Affect Your Property Investments

• Property Listings

• Bottom Line

• What's Next?

• Feedback

This Week’s Biggest News…….

1. Mortgage Rates Drop Below 5% for First Time Since 2022

2. Rents are 3.1% higher than a year ago, according to Rightmove data

Savills 2030 Forecast: How Regional Growth Could Affect Your Property Investments

Every now and then a forecast makes you stop and think, “This changes everything.” Savills’ new five-year UK housing outlook does just that, confirming much of what we’ve been saying about regional divergence.

Here’s the headline:

Average UK house prices are expected to rise 22.2% by 2030.

But the real story sits underneath the national average. Some regions are on track for almost 29% growth, while others will struggle to hit 13%. We’re looking at one of the biggest performance gaps since the pandemic.

Let’s break this down.

The North Is About to Steal the Show

Savills’ regional breakdown shows a very clear pattern: the strongest growth is nowhere near London.

The North East, Yorkshire, Wales, Scotland, and the North West are forecast to grow around 27 to 29 percent. These areas still have affordable entry points for buyers which gives them room for price expansion.

London, meanwhile, is forecast to grow just 13.6%. Not because it’s suddenly a bad investment, but because it has simply hit its affordability ceiling. When prices are already high, even small increases push buyers out, and the market slows.

London's Premium Is Quietly Falling

London’s long-standing price premium is shrinking fast. For years, it sat 60%–70% above the national average. By 2030, Savills expects that to drop to around 33%.

At the same time, regions like the North West and North East — once 30% cheaper — are catching up. When regions close the gap, early investors benefit the most.

The Timing of Growth Matters and the North Moves First

Savills also breaks it down year by year. The North East and Yorkshire hit their strongest growth in 2027 and 2028, with back-to-back years around 6%.

London stays flat through 2025 and only begins to move from 2026. If you’re waiting for London to “come back,” you may miss the North’s entire acceleration phase.

Let’s make this practical. Suppose you have £300,000 to invest.

If you buy in London

• Growth: 13.6 percent

• New value: £340,800

• Average rental yield around 4.45 percent

• Total five year return including rental income: roughly £107,550

If you buy in the North East

• Growth: 28.8 percent

• New value: £386,400

• Average rental yield around 9 percent

• Total five year return: around £221,400

That is a difference of £113,850 in your favour simply because of geography. That difference alone is enough to fund the deposit on your next property.

Why Savills Lowered the 2026 Outlook

Savills did cut their 2026 growth forecast from 4% to 2%.

But this reflects the reality of the moment: inflation is still sticky, interest rate cuts are slow, wage growth has cooled, and unemployment is rising slightly.

These pressures hurt London much more than the North because the North still has the affordability headroom to grow.

Property Listing

Bottom Line

The numbers are clear. The next five years belong to the North, not London. Higher growth, stronger yields, and better affordability are lining up in the same regions.

Investors who position themselves now will ride an entire cycle of northern expansion while the South slows down.

What’s Next?

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