Knight Frank has reviewed its estimation for United Kingdom prices to 3.5% of 2.5% this year due to the improvement of rates.
The figures have also increased slightly in the next three years, carrying the cumulative total of five years to 22.8% of 19.3%.
November forecasts can be found here:
| United Kingdom | Greater London | PCL | Pole | Main country | |
| 2025 | 3.5% | 3.0% | 0.0% | 3.0% | 2.5% |
| 2026 | 4.0% | 3.0% | 2.5% | 3.5% | 3.5% |
| 2027 | 4.0% | 3.5% | 4.0% | 3.5% | 3.5% |
| 2028 | 4.5% | 3.5% | 5.5% | 4.0% | 4.0% |
| 2029 | 5.0% | 4.0% | 6.0% | 4.5% | 4.0% |
| 5 years cumulative 2025-2029 | 22.8% | 18.2% | 19.2% | 19.9% | 18.8% |
Knight Frank has also promoted its prognosis for a slightly higher London, with a five -year growth by increasing 18.2% of 15.3%.
The real estate agency believes that the most favorable rate environment environment will also support the demand and prices in the markets promoted by the needs of Prime Outer Outer London and Prime Country Market, which covers a range of rural and urban markets above £ 750,000 outs.
However, its company has reduced its short -term forecast for Prime Central London due to the fact that the political context has become more uncertain for markets of greater value in the last six months.
Knight Franks now believes that prices will be stable in 2025 instead of increasing by 2%, but the relatively small fall in the expectations of cumulative growth (19.2% now versus 21.6% in November) Underline how strong the price grows the garbage of the Barnia Aremlyte Bame Hambruna of decade.
The government showed little flexibility in its negotiations with groups that represent rich investors abroad and decided to discard the regime that is not from the United Kingdom in favor of a new scheme that makes the country less competitive in the international stage.
It means that several No Doms have left the United Kingdom and demand in the main markets remains moderate. While the average prices on PCL fell 1.6% in the year until April, 1.2% increased in Prime Outer London.
Despite uncertainty, recent tariff turbulence means that the United Kingdom could capitalize on its image as a stable place to invest by default,
In addition, the results of the local elections recently suggest that internal restlessness can grow over the direction that is the government.
Rent market
Knight Frank’s rental forecasts have not changed to a large extent, but the company has reviewed its expectations for the United Kingdom and the largest London marginally due to the presentation of the current supply.
The agency awaits cumulative growth or 18.8% in the United Kingdom (17.6% in November) and 17.1% in London, compared to 15.3% six months ago.
| United Kingdom | Greater London | PCL | Pole | ||
| 2025 | 4.0% | 3.5% | 3.0% | 3.0% | |
| 2026 | 3.5% | 3.0% | 3.5% | 3.5% | |
| 2027 | 3.5% | 3.0% | 4.0% | 4.0% | |
| 2028 | 3.0% | 3.0% | 4.0% | 4.0% | |
| 2029 | 3.5% | 3.5% | 4.5% | 4.5% | |
| 5 years cumulative 2025-2029 | 18.8% | 17.1% | 20.5% | 20.5% |
The expected introduction of the Rolers Rights Law at the end of this year is a factor that drives the lowest offer and rents higher.
The new rules will make it difficult for the owners to recover the possession of their property and increase the risks around the rental collection.
The number of new rental listings in England in the first quarter of this year remains 18% lower than in the same period in 2019, according to Rightmove data.
The perspective of harder green regulations and the increase in mortgage costs are also squeezing the offer, since some owners choose to sell.
For example, rented private houses will need a minimum energy energy performance certificate rating since 2030. The most difficult requirement is why we have reviewed our forecasts marginally in all areas in 2029.
Knight Frank hopes that the rental demand will be resistant over the next five years, due to the affordability pressures in the sales market that only intensrate as mortgage rates will be normalized from the low base of recent years.
