CEBR: house prices to dip in 2023

House price falls are imminent amid soaring mortgage rates and increased pressure on household budgets, according to the Centre for Economics and Business Research (CEBR). The analysis suggests there will be a downturn in 2023, with prices set to fall by 4% next year. Meanwhile, Capital Economics has forecast a two-year property market downturn, with price falls of between 5% and 10% by the end of 2024. Andrew Wishart of Capital Economics comments: “The historical record shows that increases in interest rates of the scale that we are seeing now are always a precursor of house price falls". Martin Beck, of the EY Item Club, notes that more expensive properties, whose buyers are less dependent on the mortgage market and who have more savings, are more likely to hold their value but “properties for first-time buyers might see outright falls".

The Daily Telegraph (13/08/2022)