Savills Release UK Mainstream Housing Forecasts: A 2024-2028 Overview

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After a rollercoaster year, Savills released their UK mainstream residential housing forecasts for 2024-2028 on 8th November 2023.

The forecasts present a fascinating picture of the UK housing market's future. Savills predicts a price dip of -3.0% next year, due to the base rate expected to remain at its current peak well into 2024. But don't fret! As the Bank starts to reduce rates in the latter half of 2024, growth will follow. Savills' 5-year UK figure stands at an optimistic 17.9%, a significant leap from last year's 2023-2027 figure of 6%.

The early years of the forecast period will see the North, Wales, and Scotland outperforming other regions. However, by 2028, London is expected to reclaim the crown. Improving affordability and a stronger economic outlook for London compared to the rest of the UK will fuel this resurgence.

In terms of transactional activity, Savills predicts a resurgence from next year, with both mortgaged home movers and first-time buyers ramping up activity. By 2026, transactions are expected to return to around 1.16 million per year, remaining at that level until 2028. The only area predicted to remain subdued is mortgage buy-to-let activity.

These forecasts offer a glimpse into the future of the UK housing market.

LINK TO ARTICLE: Savills UK | Mainstream Residential Forecasts 2024-28