House prices to rise, then fall next year

Capital Economics forecast that house prices will keep rising this year, up by 9% at the end of 2022 compared with 2021. But analysts at the firm say homeowners should brace for a 5% fall in values across 2023 and 2024 brought on by a doubling of the average mortgage rate to 3.2% at the end of the year and a peak of 3.6% in mid-2023. Andrew Wishart at Capital Economics, said: “That would be the sharpest rise in mortgage rates since 1990.” Wishart expects the interest rate on new mortgages to rise from 1.6% at the start of this year to 3.6% by late 2023. 

The Daily Telegraph (27/04/2022)   The Times (27/04/2022)