Property prices are set to leap 7.4% before cooling dramatically as incomes fall and interest rates rise, watchdog says
- UK
house prices are predicted to continue rising quickly for the rest of this
year
- The
growth however could slow down notably by the end of 2023, to about 1%
- Currently
the average house is set to be worth an extra £20k by the end
of 2022
From the Daily Mail PUBLISHED: 23:16, 23 March 2022 | UPDATED: 23:16, 23 March 2022
House prices will continue to soar for another year
before rapidly slowing down, the Government’s fiscal watchdog has predicted.
The average home could be worth £20,000 – or 7.4
per cent – more by the end of 2022 due to high demand and strong household
savings, according to forecasts released yesterday. The Office for Budget
Responsibility said the figures far exceeded its forecasts last October.
However, a fall in incomes and a predicted rise in
interest rates over the next year means that annual price inflation will then
dramatically slow to about 1 per cent by the end of 2023.
More from OBR at
https://obr.uk/forecasts-in-depth/the-economy-forecast/housing-market/
