Savills has assessed the UK property market and thinks the worst is “certainly behind us.”
Emily Wilson at Savills said a peak-to-trough house price adjustment in the order of 10% still looks like it is on the cards, albeit occurring over a longer period than it anticipated during late 2022.
She expects the market to bottom out mid-way through 2024 as mortgage rates start to ease in anticipation of a base rate cut later in the year.
But with the prospect of a general election in late 2024, Wilson only expects that to translate into a return of modest price growth from 2025 onwards.
Savills has pencilled in the strongest price growth for 2027 when rates reach their long-term neutral level and buyers are at their most positive.
From there, it expects a return to more modest levels of price growth, as some of this exuberance dissipates.