Average house price set to hit £440,000 by 2030 as Reeves weighs up mansion tax

According to estate agents Savills, the price of houses will grow slowly for the next two years before increasing rapidly in 2029 due to a lack of homes across the UK.

Next year, Savills expects house prices to go up by 2 per cent while 2028 is expected to bring the first real-terms growth in home prices since 2022.

This will be followed by an increase of 5.5 per cent in 2029.

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This data comes ahead of Rachel Reeves’ autumn Budget, with many expecting the Chancellor to announce a mansion tax on November 26.

This would affect around 150,000 properties worth over £2 million.

Lucian Cook from Savills told The Times: “The budget continues to weigh on the market, although we expect any announcements to have a much greater impact on higher value transactions.

“Ultimately the biggest influence on the general market will come from how financial markets react to the budget itself.”

Dan Hill, a research analyst at Savills, added: “Regional performance is largely influenced by where we are in the housing market cycle.

“Since 2016, we’ve been in the second half of the cycle, where the more affordable regions in the north and Scotland outperform the UK average, and capacity for growth in London and the south is more limited.”

UK house price growth fell month-on-month in October, according to figures from Nationwide Building Society, as experts said budget uncertainty and a cooling jobs market is weighing on buyer confidence.

Nationwide said UK house price growth fell month-on-month in October to 0.3% from 0.5% in September.

]Property values lifted 2.4% on an annual basis, up from 2.2% year-on-year growth last month, taking the average UK house price to £272,226 in October, according to the lender.Nationwide said the market remained “broadly stable”.