 Anadolu Agency via Getty Images) Lucian Cook, Savills head of residential research, said: "A new Prime Minister and fiscal policy U-turns appear to have reduced some of the pressure on interest rates, but affordability will still come under real pressure as the effect of higher interest rates feeds into buyers' budgets. "That, coupled with the significant cost-of-living pressures, means we expect to see prices fall by as much as 10% next year during a period of much-reduced housing market activity." This is how much Savills thinks house prices will fall next year, by region: London, 12.5% South East, 11% East of England, 11% South West, 10% Scotland, 9% East Midlands, 9% West Midlands, 9% North West, 8.5% Yorkshire and the Humber, 8.5% North East, 8.5% Wales, 8.5% However, house prices will recover from 2024, Savills said. The estate agent thinks interest rates and the cost of living crisis will have eased off enough by then to nudge property valu){kind=link}
House prices could fall by 10% next year, according to experts at estate agents Savills – but how much property values will fall all depends on which region of the UK you live in
The average house price will fall by 10% next year, according to experts – but it all varies by region.
Mainstream London and the south east of England are expected to see the largest house price falls in the short term and the weakest performance over the coming five years, estate agent Savills thinks.
Property prices rose 13.6% in the year to August, according to the most recent house price index from the Office for National Statistics.
But experts say they will fall, as the UK faces uncertain economic times.