Knight Frank revises house price expectations
Original Article Summary
Forecast split: Knight Frank sees softer near-term prices, brighter long-term future
PropMatch Curated Analysis
Knight Frank has revised UK house price growth down to 1.5% for 2025 citing geopolitical headwinds and elevated swap rates, while raising longer-term forecasts above 5% for 2030 on anticipated political change. Rental forecasts are trimmed but upward pressure is expected to persist due to the Renters' Rights Act reducing landlord supply.
Investor Relevance
Investors need to reassess near-term capital growth assumptions given the downgrade, monitor swap rate movements (currently ~4% five-year) that directly affect mortgage costs, and factor in the Renters' Rights Act's likely supply squeeze driving rents higher — all of which affect acquisition pricing, yield expectations, and hold-versus-exit strategies.
Original Source:
Property Industry EyeStay Updated
Subscribe to our weekly briefings for curated property news and insights