By Andy Silvester
Homeowners can expect to see house prices fall this year by as much as six per cent over the year, according to a leading property association.
The boss of the National Association of Property buyer Jonathan Rolande does though expect activity and demand to pick up in the summer months.
““This will negate some of the price reduction but it’s looking very likely that by the end of 2023 there will have been no increase in prices and perhaps even a fall of up to 6 per cent.” he said today.
“But there are reasons to be more optimistic. In 2022 there were eight interest rate rises, five Housing Ministers, three Prime Ministers and four Chancellors. We had a fuel crisis, a post-pandemic slump and raging inflation. If the property market could withstand all of this, just imagine how easy things might be without such chaos. The property market has come through tougher times than this, and it will do so again,” the boss of the association said.
Will house prices go down in 2023?
Rolande’s comments echo a host of other predictions that house prices could be set for a tumble in 2022, driven by a lack of demand.
The Bank of England revealed in its monthly credit report that mortgage approvals had hit a level not experienced since the beginning of the Covid-19 crisis.
Higher interest rates have fed through to more expensive mortgages – decreasing demand to buy and also potentially increasing supply, if homeowners are unable to meet mortgage payments.
Halifax Bank predict an 8 per cent fall in the coming year, which would equate to the average UK home losing more than £20,000 from its current price tag.
Rightmove predict a fall in house prices of only around 2 per cent over the course of 2023.
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