Savills forecasts British housing recovery in 2028 after further price falls

Britain’s housing market was unlikely to recover until 2028, according to a Savills forecast reported by the Guardian on 4 November 2026. The property firm expected average prices to ease through the remainder of 2026 and decline by 1.5% in 2027, citing the Middle East war’s effects on mortgage rates and buyer confidence.

Savills projected that the recovery would gather pace in the second half of 2028, with prices rising 3.5% across that year. Its five-year forecast to 2031 anticipated growth of 15.8%, equivalent to £56,500 on average. First-time buyers were expected to lead the upturn, while northern England, Wales and Scotland were forecast to record the strongest percentage gains.

The report highlighted the pressure on existing borrowers as well as prospective buyers: more than 2.3 million UK households faced higher payments when fixed-rate mortgages expired in 2027. Savills nevertheless argued against a sharper price correction, saying most homeowners had already adjusted to higher borrowing costs and the labour market remained resilient.