Savills says UK house prices will rise this year in U-turn on earlier forecast

Lower mortgage rates prompt property firm to change its outlook from 3% drop to a 2.5% increase

A decline in mortgage rates has prompted a forecaster to reverse its predictions of a fall in UK house prices in 2024, instead suggesting the average cost of a property could rise by £61,500 over the next five years.

The property company Savills had forecast in November that it expected the average price of a home to fall by 3% this year because recent rises in the Bank of England base rate had heightened the affordability pressures on would-be buyers.