Rental market expected to outperform sales market over next 5 years

In this article we look housing market commentators and economists forecasts for the property market over the next 5 years

An average of economists and housing market commentator forecasts over the next 5 years expect the rental market to out perform the sales market, at 3.3% compared to 0.9% per year.
The sales market could see falls in average prices of homes by -7% by the end of 2024 but growth is then expected to return and average 3.8% per year between 2025 and 2027.
In contrast, the rental market is anticipated to see its strongest rates of growth in 2023 and 2024 (4.4%) before stablising at 2.5% per year for the three year period 2025 to 2027.
Housing markets that are less reliant on mortgage finance could record higher than average levels of growth. Improvements to the cost of borrowing may also result in a boost in demand in the sales market.
Source: Dataloft, OBR, HM Treasury (Independent average), JLL, Savills, Knight Frank, CBRE, Rightmove, Zoopla

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