Business news and discussion on TalkFuse.
Savills forecasts a 1.5% fall in British house prices in 2027
Savills expects Britain’s housing market to remain weak until 2028, as the Middle East conflict keeps mortgage rates higher for longer and discourages buyers. Prices are forecast to fall next year, though the firm does not expect a sharper correction.
Savills predicts a 1.5% fall in 2027, followed by a recovery from the second half of 2028 and growth of 3.5% across that year. It forecasts prices will rise by 15.8%, or £56,500 on average, over the five years to 2031. Nationwide reported annual price growth of 0.5% in October, while more than 2.3 million households are due to leave fixed-rate mortgage deals in 2027.
In short
- Savills expects the housing market to recover from 2028.
- House prices are forecast to fall by 1.5% in 2027.
- More than 2.3 million households face mortgage changes in 2027.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A modest fall in house prices could help affordability, particularly for first-time buyers who have been priced out after years of increases. Savills’ forecast of a limited decline followed by renewed growth also suggests the market may adjust without a sharper correction that could harm homeowners and unsettle the wider economy.
The case against
A forecast fall may overstate the case for lower prices: mortgage costs could ease, and continued housing demand alongside limited supply could support values. Even if the decline occurs, a 1.5% drop may do little to improve affordability, while higher borrowing costs and millions of households refinancing could put pressure on buyers and existing owners alike.
Read the full article at the source →
Originally published by The Guardian as “Britain’s housing market unlikely to recover until 2028, says Savills”.