Max Turner, head of new homes at Savills in Suffolk, discusses the firm’s housing market predictions for next year and beyond.

It’s been somewhat of a rollercoaster 12 months for the UK’s housing market, with rising interest rates and the increase in the cost of living making for a turbulent time. 

Values appear to have held up slightly better than expected in 2023 as mortgage markets settled over spring and autumn. According to Savills research, annual falls will stand at 4% by the end of the year, which will leave values down a total of 7% since the autumn of 2022.

Cash buyers have remained the most resilient, with activity 3.5% higher than the 2017-19 average. However, less activity among mortgaged buyers – most notably buy-to-let investors – means overall transactions are expected to be 20% down on 2022. 

East Anglian Daily Times: Max Turner, who leads the new homes team at Savills SuffolkMax Turner, who leads the new homes team at Savills Suffolk (Image: RMG Photography)

Savills is predicting the average UK house price to drop by only 3% in 2024 as affordability pressures slowly ease, with the expectation that the base rate will stand at 4.75% by the end of the year. Here in the East of England, prices are predicted to fall by 3.5% over the next 12 months – but less debt dependent markets may perform better. 

With the Bank of England expected to start cutting interest rates in the second half of 2024, this should give more capacity for price growth from the end of next year. Savills has forecast that house prices will grow by an average 17.9% across the UK over the five years to 2028. In the East of England, values are expected to grow by 16.7% over the same period – bringing the average house price to £397,060 by the end of 2028.

The number of transactions are expected to remain at around one million in 2024, rising to 1.16 million at the end of 2028, slightly below a pre-pandemic norm of 1.2 million.

So, what does this all mean for those wanting to move in 2024? While the housing market appears to be past its peak pain, the first cuts to interest rates still look to be some way off. The market will remain price sensitive in the short term – and setting a realistic guide price will still be key for those hoping to sell.

Price growth will accelerate once affordability pressures ease – but this is only likely to happen as we head into 2025, topping out in 2027 before settling at a rate broadly in line with income growth.

For advice on the new homes market in Suffolk contact Max Turner at Savills Suffolk on 01473 234826 or