House prices set to fall until 2028, with London hit hardest
House prices are not expected to recover from the UK’s property market slump until the second half of 2028, with London set to be the country’s worst-hit region. The average house price in the UK is set to fall by a further 1.5 per cent in 2027, according to new research from estate agency Savills, [...]
Estate agency Savills predicts house prices in the UK will not rebound until mid-2028, with London facing the steepest decline. The average property price in the UK is projected to drop another 1.5% in 2027, before a modest recovery in the latter half of the following year. Rising mortgage rates, driven by the Iran conflict, have dampened buyer enthusiasm amid inflation concerns, said Emily Williams, Savills' director of residential research.
She attributes the mortgage-rate relief delay to the lengthy Middle East conflict, which will dampen buyer sentiment and affordability, suppressing activity and putting downward pressure on prices next year.
London homeowners face an especially challenging outlook, with house prices set to rise by only 8.1% over the next five years, compared to 23.3% in the North West and 22.2% in the North East. The capital's average home price is more than 11 times the average salary, surpassing the six times typical earnings ratio in the three northern English regions.
Savills' Dan Hill points to Manchester, Leeds, Liverpool, and Bristol as markets expected to outperform London, citing strong employment, investment prospects, and value for money. He also notes that larger family homes remain popular due to flexible working patterns and demographic shifts, while flats suffer from affordability issues, safety concerns, and increased supply.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
