Downward pressure comes as first-time buyers and landlords bear the brunt of an affordability crunch
House sales will fall by more than a quarter next year as higher borrowing costs price out investors and first-time buyers and bring an end to the property boom.
Transactions are expected to fall by 27pc in 2023, dropping from 1.19 million this year to 870,000 – the lowest level in more than a decade according to estate agency Savills.
Higher interest rates and dwindling buyer demand will finally pump the brakes on house prices, Savills warned, as it predicted a 10pc drop in property values in 2023.
But it expects house price growth will rebound to 1pc in 2024 and accelerate to 3.5pc in 2025. In the four years between 2024-2027, it expects price growth of 18pc as affordability pressures “gradually ease”.