Britain’s housing market unlikely to recover until 2028, says Savills
Source: The Guardian ·
House prices forecast to fall by 1.5% next year as Middle East war keeps mortgage rates higher for longerBritain’s sluggish housing market is not expected to recover until 2028 as higher mortgage rates linked to the war in the Middle East deter buyers and weigh on prices.The property firm Savills said average house prices were expected to drift lower during the rest of 2026 and fall by 1.5% in…
From the source
Britain’s sluggish housing market is not expected to recover until 2028 as higher mortgage rates linked to the war in the Middle East deter buyers and weigh on prices. The property firm Savills said average house prices were expected to drift lower during the rest of 2026 and fall by 1.5% in 2027, as the prolonged conflict undermines buyers’ confidence and keeps mortgage rates higher for longer. Improving economic prospects and mortgage affordability are expected to support a recovery from 2028. Savills expects house prices to rise by 15.8% – or £56,500 on average – over the five years to 2031, with values starting to recover in the second half of 2028. Nationwide said last week that UK house prices had risen by an annual rate of just 0.5% in October, the slowest pace in more than two years. The average price for a property in the UK stood at £273,566, the lender said. The Bank of England is widely expected to increase interest rates from 3.75% to 4% on Thursday, putting further…
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