Official forecasters warn house prices may fall almost 15%: OBR says that pandemic slump will wipe more than £30K off the value of a typical home
More than £30,000 could be wiped off the value of a typical home as the pandemic hits the property market.
In a stark warning to homeowners, the Office for Budget Responsibility said prices could fall 2.4 per cent this year and 11.7 per cent next year.
That would push the average price of a house down from £230,000 to below £200,000.
The OBR said prices could fall 2.4 per cent this year and 11.7 per cent next year. That would push the average price of a house down from around £230,000 to below £200,000
The calculations are based on the OBR’s ‘downside’ scenario for the economy.
Its ‘central’ projection is for prices to fall by 0.7 per cent this year and 3.8 per cent next year, knocking around £10,000 off the value of a typical home.
The warning came as property website Rightmove reported a rush in demand for homes worth between £400,000 and £500,000 since the Chancellor, Rishi Sunak, cut stamp duty last week on homes costing less than £500,000 until the end of March next year.
The previous threshold was £125,000 for movers and £300,000 for first-time buyers.
Rightmove reported a 49 per cent rise in inquiries since his speech.
Towns in the South saw the biggest increases, with demand more than doubling in Milton Keynes, Watford and Harrow.
There was also a 40 per cent spike in interest in homes worth £500,000 to £750,000 where buyers will save £15,000.