Savills predicts that the UK housing market will not recover until 2028, with house prices expected to decline by 1.5% in 2027. The ongoing conflict in the Middle East is contributing to higher mortgage rates, which are deterring potential buyers and suppressing market activity.
Watch for how rising mortgage payments in 2027 will impact buyer sentiment and market activity. The Bank of England's interest rate decisions will also be crucial, as they could further influence affordability and housing demand leading up to 2028.