- Many experts predicting price drop between 5 and 15 per cent
- Effects could vary depending on leverage and geography
For over a decade, UK house price growth has been unbroken. The Office for National Statistics has recorded an increase every month since May 2012. Neither Brexit nor the pandemic has been able to stop it, but many experts are now forecasting that the fallout from the “mini” Budget will.
Last week, Knight Frank became the first major broker in the UK to forecast a double-digit downturn – predicting that house prices would fall almost 10 per cent over the next two years. It said house prices will have risen 6 per cent by the end of 2022 but that they will fall 5 per cent in 2023 and a further 5 per cent in 2024 as a result of the sudden spike in mortgage rates caused by the government’s fiscal plans. This would take house prices back to where they were last summer.