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Savills Cuts 2026 UK House-Price Outlook to 2% as Budget Uncertainty Weighs

The firm still projects roughly 22% cumulative growth by 2030, with price rises outpacing inflation only from 2028.

Overview

  • Savills halved its 2026 house-price forecast to 2%, citing weaker buyer sentiment and uncertainty ahead of the 26 November Budget.
  • Over five years, UK prices are forecast to rise about 22.2%, with real-terms growth expected to resume in 2028.
  • London is projected to underperform with 13.6% growth by 2030 and no increase until 2027, while northern regions, Scotland and Wales are set to lead gains.
  • Transactions are expected to dip from 1.18 million to 1.15 million in 2026 before recovering to roughly 1.19 million by 2030, partly after purchases were brought forward to use lower stamp-duty thresholds.
  • Fewer-than-expected rate cuts, inflation near 3.8% and a softer labour market are restraining affordability, with any Budget tax changes likely to hit prime values more and overall outcomes shaped by financial-market reaction.