As part of our commitment to staying ahead of market trends, we recently attended the National Landlord Investment Show, where one of the standout speakers was Kate Faulkner. Her sessions provided a fascinating overview of the latest UK property statistics and the direction of the housing market over the coming years.
With the property market at something of a crossroads, understanding what the next five to ten years could look like is becoming increasingly important for landlords, investors and homeowners alike. We wanted to share some of the key insights that we believe are particularly valuable.
One of the most interesting pieces of data was the comparison of projected cumulative house price growth across the UK. The forecasts show significant regional variation, highlighting just how differently local markets are expected to perform.
It was also notable that Hamptons’ projections are considerably more cautious than those from Savills and JLL. This reflects Hamptons’ more conservative view on affordability pressures, interest rates and the pace of market recovery, particularly across London and the South East.
The UK housing market appears to be entering a period where house price growth is expected to moderate, with affordability remaining stretched and wage growth continuing to vary across different parts of the country. Rental growth may also begin to follow a similar pattern in the near future.
One of the most striking trends highlighted in the data is the shift in projected growth from the South towards the North of England. Regional differences are becoming increasingly pronounced, creating a very different outlook depending on where you invest.
The graph below illustrates this clearly, with many southern regions forecast to see relatively flat house price growth over the next few years.
While that may sound concerning at first glance, it doesn’t necessarily signal a poor investment market. Experienced investors understand that strong returns are not driven solely by capital growth. Rental income, long-term appreciation and buying in the right locations remain key factors, and periods of slower price growth can often present excellent opportunities for those taking a longer-term view.
One point we are particularly conscious of is that, while many investors are turning their attention to the higher-yielding markets in the North, Medway continues to strengthen its position as one of the South East’s most compelling long-term investment locations.
Average property prices remain significantly more affordable than many surrounding areas, while the Medway Towns continue to benefit from strong rental demand, ongoing regeneration projects and direct high-speed rail links into London. In our view, this creates an attractive combination of affordability, tenant demand and long-term capital growth potential.
We believe Medway has already proven itself as a resilient investment location and, with further regeneration and infrastructure improvements planned, it is well placed to continue performing strongly over the years ahead.
