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Thursday, 24 March 2022

OBR Forecasts 2022 Housing Market Mayhem — 7.4% rise this year!

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/


 

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