Savills forecasts a 1.5% fall in average UK house prices in 2027 after a broadly flat 2026, according to a report published by Property Industry Eye on 4 November. The consultancy’s revised outlook places a more sustained recovery later in the forecast period.
The report attributes the weaker near-term view to borrowing costs and affordability pressures. Savills expects average prices to rise 15.8% over the five years to 2031, with growth resuming in 2028. These are conditional forecasts, rather than recorded changes or a guarantee of what a home will be worth.
Regional differences matter
The reported five-year projections range from 23.3% growth in the North West to 8.1% in London. The report also describes a more difficult near-term outlook for London, the South East and East of England. A UK average therefore conceals substantial differences even within the forecast itself.
Those regional estimates should not be applied automatically to a street, development or individual home. Property condition, tenure, local supply and the characteristics of comparable sales still need consideration. A forecast can frame a discussion, but it cannot replace a property-specific assessment.
Understand the assumptions
The outlook depends heavily on the expected path of mortgage costs and wider economic conditions. If those assumptions change, the predicted timing and scale of recovery may change too. A forecast is best read with its publication date and supporting assumptions visible.
For sellers, ask an agent to explain the current local evidence behind a proposed asking price. Distinguish completed transactions from advertised prices and note when each comparison was recorded. A future regional growth projection is not evidence that a buyer will pay more today.
For buyers, assess the commitment against their own circumstances and the actual borrowing terms available. Avoid relying on a projected price increase to make an otherwise unaffordable purchase appear manageable.
Use the outlook as one input
Agents and property businesses can test more than one scenario when planning. Record what would change if transactions or prices differ from the central forecast, rather than building every decision around one anticipated outcome.
Source: Property Industry Eye’s report of the revised Savills residential forecast, 4 November 2026. Figures are attributed to that report; the projections are not promises of investment performance.