House prices will fall by THOUSANDS next year in sharpest drop in decades as demand slows, forecasters predict
HOUSE prices will fall by thousands next year in the sharpest drop in decades, forecasters have predicted.
Those hunting for a home have been handed a boost as prices are set to fall by 4.7 per cent next year, according to the Office for Budget Responsibility
This means house prices will be 7.6 per cent lower in total compared to January 2022.
Lower levels of demand are predicted to cause the huge drop-off.
The OBR then expects a slow recovery in house prices, but it will take until the second half of 2027 for them to reach their 2022 peak, they estimate.
It comes as house prices fell at their sharpest rate in 14 years in August — with the average value now £259,153, figures show.
The 5.3 per cent annual drop was the biggest since July 2009 and left house prices £14,600 below their August 2022 peak.
Home-mover completions with a mortgage in the first half of this year were a third down on 2019, while first-time buyer numbers were around 25 per cent lower.
Jeremy Hunt today unleashed sweeping tax cuts to ease the burden on millions of Brits and help resuscitate the flagging economy.
After months of restraint, the Chancellor slashed National Insurance by 2 percentage points to save workers an average £450.
He also handed businesses massive relief to form the “biggest package of tax cuts since the 1980s”.