Canterbury & Kent

Savills South East House Price Forecast 2027: Why Canterbury and Kent Buyers and Sellers Need a Plan Now

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A fall of 3.5 percent might sound small on paper. But on an average Kent home, it is the difference between a sale that completes smoothly and one that collapses over a disputed valuation. On 4 November 2026, Savills published a new UK housing market forecast predicting exactly that scale of decline for the South East in 2027, and the Bank of England has just made borrowing more expensive too. This article explains the Savills South East house price forecast 2027 in plain terms and sets out what it means for anyone buying, selling, or remortgaging in Canterbury and across Kent this November 2026.

Key Takeaways

• Savills forecasts South East house prices will fall 3.5 percent in 2027, before recovering with 2.0 percent growth in 2028.
• The South East’s five-year growth to 2031 is forecast at just 9.1 percent, among the weakest of all UK regions, against 23.3 percent in the North West.
• The Bank of England raised Bank Rate from 3.75 percent to 4 percent on 5 November 2026, and Savills does not expect average mortgage rates to fall below 5 percent until early 2028.
• Buyers in Canterbury and Kent have more room to negotiate; sellers should price realistically and expect longer marketing times.
• An independent RICS survey and valuation are more important than ever in a falling or flat market, to avoid overpaying or losing a sale over hidden defects.

The Savills South East House Price Forecast 2027 Explained

Savills’ latest forecast, published 4 November 2026, sets out a cautious path for UK house prices. Nationally, Savills expects prices to be flat in 2026 (0.0 percent), before falling 1.5 percent in 2027, around £5,500 off the average home. Growth then returns: 3.5 percent in 2028, 5.0 percent in both 2029 and 2030, and 3.0 percent in 2031. Over the full five years to 2031, Savills forecasts UK prices up 15.8 percent, or roughly £56,500.

The South East picture is weaker than the national average. Savills forecasts a 3.5 percent fall in South East prices in 2027, followed by 2.0 percent growth in 2028, 4.0 percent in 2029, 4.0 percent in 2030, and 2.5 percent in 2031. That gives a five-year total of just 9.1 percent, one of the lowest figures of any English region, compared with 23.3 percent forecast for the North West. London faces a similarly sharp 3.5 percent fall in 2027, with five-year growth of 8.1 percent.

Savills also expects a peak-to-trough fall of around 3.0 percent across the rest of 2026 and into 2027 nationally, with transactions dropping in 2027 before recovering from 2028. First-time buyers are expected to lead that recovery, while home movers are likely to stay cautious until borrowing costs ease.

Why Mortgage Rates Are the Real Story Behind the Forecast

Savills’ numbers rest heavily on its assumptions about Bank Rate and mortgage pricing. The forecast assumes Bank Rate ends 2026 at 4.00 percent and 2027 at 4.25 percent, before falling to 3.25 percent by the end of 2028. Average mortgage rates, Savills says, are not expected to drop below 5 percent until early 2028, moving from an assumed 5.32 percent at the end of 2026, to 5.09 percent at the end of 2027, and 4.23 percent at the end of 2028.

That assumption looks even more significant given recent events. On 5 November 2026, the Bank of England raised Bank Rate from 3.75 percent to 4.00 percent, an 8-1 vote and the first rise in over three years. For Kent households with fixed-rate deals ending soon, or anyone taking a new mortgage, this is the clearest practical signal yet that cheap borrowing is not returning quickly.

Emily Williams, Director of Residential Research at Savills, said: “The drawn-out conflict in the Middle East has pushed back the prospect of meaningful mortgage-rate relief.” Dan Hill, Residential Research Associate at Savills, added: “Markets combining relative affordability with strong employment and investment prospects are expected to outperform.” Savills also flags wider risks, including geopolitical tensions, energy markets, and domestic political risk, including the possibility of a general election in 2027.

What This Means for Canterbury and Kent Buyers

If prices are expected to soften over the next year, buyers gain some leverage, but only if they use it carefully. A property advertised at a price set before this forecast may no longer reflect where the market is heading.

Practical points for buyers in Canterbury and the wider Kent area:

• Do not assume the asking price is the right price. Ask for comparable recent sales and check how long the property has been listed.
• Factor mortgage costs at today’s rates, not hoped-for future cuts. With average mortgage rates not expected under 5 percent until early 2028, budget on current pricing.
• Commission an independent valuation separate from the mortgage lender’s valuation, which is designed to protect the lender, not the buyer.
• Get a RICS Level 2 Homebuyer Report or Level 3 Building Survey before exchanging contracts, particularly on older Kent properties with timber frames, flint, or listed status.
• Use any survey findings as a genuine negotiating tool, in a cooling market, sellers are often more willing to adjust price or contribute to repair costs.

What This Means for Canterbury and Kent Sellers

Sellers across the South East should treat the Savills forecast as a planning tool, not a reason to panic. A 3.5 percent regional fall forecast for 2027 does not mean every Kent property will lose value at that rate, local demand, condition, and presentation still matter enormously. But overpricing in this climate risks a longer, more stressful sale.

Steps worth taking now:

• Price realistically from the outset, based on recent local sales rather than historic peak valuations.
• Commission a pre-sale survey to identify issues before a buyer’s surveyor does. Fixing problems, or pricing them in upfront, avoids late renegotiation.
• Be prepared for slower transaction volumes. Savills expects transactions to fall in 2027 before recovering from 2028, so marketing periods may lengthen.
• Keep paperwork, building regulations certificates, and warranty documents ready to speed up conveyancing once an offer is agreed.

Remortgaging in Kent: What Owners Should Watch

Homeowners coming to the end of a fixed-rate deal face a changed picture after the Bank of England’s 5 November 2026 rate rise to 4.00 percent. Savills’ own assumptions, rates staying above 5 percent on average until early 2028, suggest payment shocks are likely for anyone moving off a low fixed rate secured in recent years.

For Kent owners, it is worth getting an updated, independent property valuation before speaking to lenders about remortgaging or further borrowing. A valuation that reflects current South East conditions, rather than outdated price assumptions, gives a clearer picture of available equity and loan-to-value options.

FAQ: Savills South East House Price Forecast 2027

Does the Savills forecast mean Canterbury house prices will definitely fall 3.5 percent? No. The 3.5 percent figure is a South East regional average forecast by Savills for 2027. Individual towns, including Canterbury, may perform differently depending on local demand and property type.

When does Savills expect the market to recover? Savills forecasts growth returning from 2028, with 2.0 percent in the South East that year, rising to 4.0 percent in both 2029 and 2030.

Why did the Bank of England raise rates in November 2026? The Bank of England raised Bank Rate from 3.75 percent to 4.00 percent on 5 November 2026 in an 8-1 vote, the first increase in over three years.

Should I delay selling my Kent property until 2028? That depends on personal circumstances. Savills’ forecast suggests prices may be softer through 2027, but transactions and demand are expected to improve from 2028. A professional valuation can clarify options for your specific property.

Is a survey still worth it in a falling market? Yes. A RICS survey becomes more valuable in a softening market because it supports realistic negotiation and protects buyers from overpaying for undisclosed defects.

Conclusion: Plan Around the Forecast, Not Against It

The Savills South East house price forecast 2027 points to a tougher short-term market, with prices expected to dip before recovering from 2028. Combined with the Bank of England’s rate rise on 5 November 2026, Kent buyers, sellers, and owners all face a market where accurate, independent information matters more than optimism.

Whether negotiating a purchase, pricing a sale, or preparing to remortgage, an independent RICS survey and valuation remain the most reliable way to make sound decisions in this environment. Contact Canterbury Surveyors to book a RICS Level 2 or Level 3 survey or an independent valuation for your Canterbury or Kent property today.