UK Tipped for House Price Plunge

Anyone seeking a house for sale in Croydon may find they can get a bargain in the next few months, as house prices have been tipped to fall across the UK over the next two years. 

The latest report by the Office for Budget Responsibility, published in conjunction with the government’s Autumn Statement, predicted that by the end of 2024 the typical house price will be nine per cent lower than now.

While that may be subject to regional variations as ever - London prices have risen by less than other parts of the country in the past few years - it still offers a significant chance of some attractive lower-priced homes becoming available in Croydon.

The prediction of a fall in prices is no surprise, given both the latest indicators from the property market and the state of the wider economy, where inflation has risen to 11.1 per cent and the UK is on the cusp of what is expected to be a lengthy recession.

In addition, recent price surveys have shown the value of properties has been starting to level off, with the latest Office for National Statistics data revealing that the typical UK house price in September was £295,000 - unchanged from August. 

The annual figure also fell, from a rise of 13.1 per cent in the 12 months to August to just 9.5 per cent, although some of this difference could be accounted for by a jump in prices last September due to changes in stamp duty rules.

At the same time, it is important to consult with an estate agent on the best mortgage options, as the cost of borrowing is likely to increase again as the Bank of England continues to respond to the high inflation rate. Therefore, while the price of homes may go down, the interest you could pay is likely to be high compared to that faced by borrowers in recent years.