Savills Revises UK House Price Forecast Amid Geopolitical Instability
Savills, a property consultancy, has adjusted its forecast for UK house prices, predicting a rise of 18.5% by 2030, down from an earlier estimate of 22.2%. This revision is attributed to geopolitical instability in the Middle East, which has impacted inflation and mortgage pricing. The consultancy anticipates that higher borrowing costs will limit transaction levels and constrain price growth in the near term. The forecast also considers the impact of increased regulation leading landlords to exit the market, particularly affecting prices in London and the South East. Despite these challenges, Savills expects certain factors, such as less stretched affordability compared to 2022 and the widespread use of fixed-rate mortgages, to mitigate the risk of forced sales. 
