Halifax Predicts 8% Fall in UK House Prices in 2023
16 Diciembre 2022 - 4:56AM
Noticias Dow Jones
By Ian Walker
Halifax predicts that U.K. house prices will fall around 8% in
2023, after a year of two halves in 2022 where the cost of living
crisis and higher interest rates hit growth in the second half.
Halifax, which is part of Lloyds Banking Group PLC, said that
based on Lloyds' economic projections the average house price will
fall back next year to April 2021 levels, reversing gains made
during the coronavirus pandemic.
"There is still uncertainty around this forecast, with the
trajectory for base rate--now expected to peak at 4%--and
unemployment levels key to determining any future changes," Halifax
Homes Director Andrew Asaam said.
House prices rose more than 17,500 pounds ($21,313) in the first
half of the year through to June on the back of low interest rates,
as well as pandemic-driven shifts as buyers sought bigger
properties after periods of being cooped up during lockdowns and
home working.
However, prices have since fallen as inflation started to creep
up and the Bank of England began hiking interest rates to control
the economy, subsequently raising mortgage rates and causing many
lenders to withdraw their fixed rate offers.
The average house price currently stands at GBP285,579 compared
with GBP272,778 a year ago, and a peak of GBP293,992 in August.
"Though the limited supply of properties for sale will continue
to support prices, the pandemic-driven surge in demand has receded,
and we're emerging out of more than a decade of record low interest
rates," Mr. Asaam said.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
December 16, 2022 05:41 ET (10:41 GMT)
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