House prices are poised for their biggest fall since the financial crisis, with economists warning of a market “correction” this year caused by rising borrowing costs and a likely recession.
Two-thirds of economists polled by The Times expected house prices to fall by more than 4%, with most warning of near-double-digit falls, making 2023 the worst year for the market real estate since 2009.
“A double-digit price drop would not be surprising,” said Sanjay Raja, chief UK economist at Deutsche Bank. “If typical mortgage rates remain above 5%, coupled with an unprecedented reduction in household incomes, it is hard to see how house prices can avoid a significant impact in 2023.”
Interest rates are at an all-time high