Average house prices in the east of England could fall by 11% next year, property experts have said. 

The Suffolk-based estate agents Savills revealed its latest five-year house price forecasts today. It has predicted that mainstream house prices in the east of England will fall by 11% in 2023. 

This news comes as the Bank of England announced that the base interest rate would be rising from 2.25% to 3%, meaning that monthly mortgage payments will be increasing. 

However, prices are expected to rise by 15% between 2024 and 2027. 

Prime markets in the east of England are expected to follow a similar pattern. They are predicted to fall by around 6% 2023, before rising by 16.5% between 2024-2027 as pressures ease. 

Peter Ogilvie is Saville’s head of residential sales, and is based in Ipswich. 

He said: “The Suffolk housing market remained remarkably strong through the first nine months of 2022, but levels of demand have certainly changed over the autumn. 

“Rising interest rates and increasing costs of living have led to more caution from buyers, while many sellers are hesitant to bring their properties to market given the economic uncertainty.  

“Consequently, activity levels have cooled and the fierce competition that we’ve been experiencing has subsided.” 

He explained that some areas could potentially be less affected than others. 

He said: “I think there may well be parts of Suffolk and North Essex that remain relatively resilient - Southwold, Aldeburgh, Walberswick and the hotspots along the Heritage Coast being the prime examples. 

“Buyers looking in these areas also tend to be less reliant on borrowing money to fund a move – so they are somewhat cushioned from the issues around affordability.” 

However, he advised that buyers would nonetheless do well to be cautious. 

“Even the higher end of the market will not be completely immune,” he said. “The market is likely to continue to cool in the short term and sellers will need to be careful to price their properties accurately.” 

Nationally, Savills expects that the average house price will fall by 10% in 2023 before growth resumes the following year.  

By 2027, Savills predicts that the average UK house price will be £381,578.