Following the new interest rate rise, the Bank of England’s warning that people are facing the longest recession on record and some predicting house price falls of up to 30%, UK newswire, Newspage, polled 250 mortgage brokers and estate agents about how far they think prices will fall during the next 12-18 months. The results were:
- 58% believe prices will fall by up to 10%
- 27% believe prices will fall by between 10% and 20%
- 8% believe prices will fall by 20%+
- 4% believe prices will not fall
- 3% were unsure
Newspage CEO, Jukka Väänänen, commented: “These poll results suggest that most people in the property and mortgage world believe we are in for a house price correction rather than a crash. The consensus seems to be that we will be back where we were pre-pandemic before the stamp duty holiday and availability of ultra-cheap mortgage finance sent house prices spiralling upwards.”
Natalie Hines, founder at Sutton Coldfield-based Premier One Mortgages, said: “I am starting to see a clear slowdown in purchase activity so I'm fully expecting a drop in prices in the months ahead, but by how much is anyone's guess.
“I certainly don't think we'll see the 30% drop some are predicting, as that would put the entire economy on the brink, but a drop of some kind is inevitable. I work with a young demographic within the TV industry, and they are waiting to see what happens following the latest interest rate announcements and ongoing cost of living crisis.
“A correction in house prices is what's needed to help get first-time buyers on the property ladder. For many first-time buyers, at present, prices are simply out of reach. A house price correction could give them the leg-up onto the ladder that they need."
