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House prices a year from now

ended 06. October 2022

With rising interest rates, sky-high inflation and the economy almost certainly set to enter recession, where do you think average house prices will be a year from now? Click >> here << to answer the snap poll (takes 5 seconds) and give your reasoning in your response to this news alert. Deadline is tight as we plan to issue this alert at 10am.

5 responses from the Newspage community

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Ricky Dosanjh
Director at Reeds Financial
I think we will see a dip in house prices, but not at the levels seen in 2008. Demand is still driving prices higher and there are still multiple buyers fighting for the same property. However, with mortgage rates set to rise further, we expect fewer buyers to be in the market during the winter months. Lenders will also continue to tighten up their appetite for lending and potentially criteria, which may make it harder for people to borrow what they want. Lower demand and tighter lender criteria equates to lower prices.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
House prices will fall back modestly as access to finance is tightened and the economy sinks. Forced sales will be relatively rare as banks have stricter affordability tests and the recession will be long, but not that sharp.
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Riz Malik
Independent Financial Adviser at R3 Wealth
I predict house prices may come off 5-10% within the next year which would not necessarily be a bad thing. Even though the economic outlook is concerning, we still live on an island with a chronic shortage of housing that has not been addressed by successive governments. Given the perfect storm that is brewing in the buy-to-let market, I think some landlords will start to review their portfolios. This will be driven by stricter stress tests on lending and challenges to raise rents .
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Rob Gill
Managing Director at Altura Mortgage Finance
The big unknown is where will mortgage rates settle following the recent turbulence. Average fixed rates are now around 6%. At that level, a double-digit drop in house prices must be a likely outcome.
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Alastair Hoyne
CEO, Finanze Capital at Finanze Capital
The consequences of rising mortgage prices will be brutal in the coming months to say the least. This will impact home prices in the coming year by about 8 to 10 per cent if current trends in the market prevail and the BoE further raises its base rate next year. Lenders will have fewer residential mortgage deals available, which will reduce property demand and put a downward pressure on house prices.