House prices could slide 7% in the next two years

Experts say UK house prices could fall by 7% in the next two years as mortgage rates soar and the cost of living crisis gets worse. With the Office for National Statistics last week reporting a sharp drop in annual growth and Halifax data showing that prices fell for the first time in more than a year in July, analysts at Capital Economics have forecast a two-year downturn, with house prices falling by around 5% in 2023 and a further 2% in 2024. The experts believe demand will fall as buyers see budgets and confidence hit by rising mortgage rates, high inflation and a potential recession. Andrew Wishart, a senior property economist at Capital Economics, commented: “Areas where house prices are highest relative to incomes are most vulnerable. London and the South East are therefore likely to see the largest falls and the North and Wales the smallest.” 

Daily Express (29/08/2022)   Daily Mail (29/08/2022)