A panel of experts are in agreement that house prices will continue to fall by as much as 10% between now and Autumn 2024, according to new research conducted by personal finance comparison website, finder.com.

Finder brought together an expert panel of academics, economists, mortgage and savings experts, to ask them for their predictions on what will happen to the base rate for the rest of 2023, and the impact this will have on the UK economy.

Almost three quarters of the experts (73%) believe that house prices will fall between 5% – 10%, with more than half expecting prices to fall between 5% – 7.5%, and 18% predicting a more substantial drop of 7.5% – 10%.

Charles Read, fellow in economics at the University of Cambridge expects house prices to drop by 5% – 7.5%.

He explained that: “sharp rises in interest rates since the end of 2021 has reduced affordability of mortgages and new house purchases, pushing down prices”.

David Mcmillan, professor in finance at the University of Stirling expects a more severe reduction of 7.5% – 10%.

McMillan explained that household incomes will be “squeezed in several ways” next year and “as much as these economic conditions will lead to price falls, they will also likely lead to a fall in the volume of transactions.”

David Hollingworth, associate director at L&C Mortgages agrees that house prices will fall but not significantly, as he expects buyer confidence could grow.

He commented that: “as the rate outlook improves and mortgage rates stabilise and continue to improve, that could see buyer confidence begin to improve into next year which will likely see a soft landing.”

Source: Property Notify