The average house price will be more than £22,000 higher than it is now in five years’ time, despite property values being expected to fall by 10% in 2023, according to a forecast.
The predictions, made by Savills, assume that house prices will start to recover from 2024 as interest rates and affordability pressures ease, after the expected fall next year.
First-time buyers and buy-to-let investors will bear the brunt of increased affordability issues next year, adding to pressures on rental prices, according to Savills’ predictions.
