Business · Companies · 3 hrs ago
Savills predicts UK house prices will fall 1.5% next year
Savills expects house prices to fall 1.5% next year in its forecast.
The prediction concerns the UK housing market, though the source gives no location details beyond that.
The firm expects a typical home to gain £62,000 by 2031 after the expected fall.
Savills says the prolonged war across the Middle East has delayed relief from mortgage rates for borrowers.
Lower mortgage rates can ease the cost of borrowing to buy a home, so delayed relief matters to buyers and homeowners.
The forecast points to a short-term decline followed by growth over several years.
No further steps or policy changes are described.
Savills forecasts that average UK house prices will fall by 1.5% in 2027.
The firm expects prices to drift lower through the rest of 2026 and 2027, with a peak-to-trough decline of about 3%.
It says mortgage rates and prolonged conflict in the Middle East are weighing on buyer sentiment and affordability.
Savills expects prices to begin recovering in the second half of 2028.
Over the five years to 2031, it forecasts house prices will rise by 15.8%, or £56,500 on average.
- Who
- Property firm Savills made the forecast.
- What
- It expects average mainstream UK house prices to fall by 1.5% in 2027.
- When
- The forecast was published on November 4, 2026. The expected fall is across 2027.
- Where
- The forecast covers Britain’s housing market.
- Why
- Savills says mortgage rates are likely to remain higher for longer, while prolonged conflict in the Middle East weighs on sentiment.
This story does not have two clearly opposing sides.
Savills expects house prices to drift lower.
Savills forecasts average mainstream house prices will fall by 1.5% across the year.
Savills expects house prices to start recovering.
Savills forecasts a 3.0% rise in house prices for the year.
- 2027 forecast
- 1.5% fall in average mainstream house prices
- Peak-to-trough decline
- Around 3.0%
- Five-year forecast
- 15.8% rise, or £56,500 on average, to 2031
- Recovery timing
- Second half of 2028
- 2031 forecast
- 3.0% house price growth
2 sources
What people are saying
We expect this will suppress activity and put pressure on prices next year.
But this is unlikely to trigger a sharper correction.
Markets combining relative affordability with strong employment and investment prospects are expected to outperform, including Manchester, Leeds, Liverpool and Bristol, alongside well-connected commuter locations offering better value than their surrounding regions.