- Property firm Savills has significantly reduced its forecast for average house price growth in Britain for the current year to just 1.0 per cent, down from an earlier 4.0 per cent.
- Conversely, Savills has upgraded its five-year house price projection, now expecting a 24.5 per cent increase by 2029, up from 23.4 per cent.
- The revised short-term outlook is attributed to recent economic and geopolitical instability, alongside buyer behaviour influenced by stamp duty changes.
- The more optimistic long-term forecast is largely due to a more relaxed approach by mortgage lenders to affordability tests, which should support prices and sales.
- Savills anticipates the average house price to reach £448,600 by the end of 2029, an increase of £86,300 from mid-2025 levels, with buyer demand expected to rise by early autumn.
IN FULL
