The age of significant house price increases may be coming to an end, as population growth slows and more people work from home, according to a senior economist at the Office for Budget Responsibility.
Professor David Miles, one of three members of the UK budget watchdog’s top committee, said in a speech that changing working habits, a flattening population and an end to a decades-long drop in borrowing costs make sharp house price growth less likely in the next 40 years.
The OBR’s economic outlook in March projected that residential property prices will fall by around 10% from their level at the end of 2022, with the cost-of-living crisis and higher interest rates contributing to lower prices.
Earlier this month Halifax’s house price index found that house price growth had dipped in April, with the average house price of a home in the UK stood at £286,896, around £7,000 less than last summer’s peak.
However, the level is still £28,000 higher than two summers ago as properties continue to hold on to much of the value gained over the pandemic.
Separate data from the Land Registry – the most recent figures released – show that the average UK house price was £288,000 in February 2023, which was £16,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.
I wish I had his crystal ball, on the other hand I’m glad I haven’t. Nonsense.
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Yeah! What would he know! 😉
You’re right, nobody knows, but that doesn’t mean we should flatly disregard it. Worth at least considering his stated reasons, because clients (vendors) will expect agents to have a view on this. Dismissing him as ‘nonsense’ doesn’t help with agent credibility.
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So what
No one can tell the future
You can spend your life listening to so called EXPERTS
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