House prices to stay high in Wales even as they collapse elsewhere say forecasters
First-time buyers hoping that house prices might fall in Wales if a recession does hit may be disappointed by a new forecasters saying that they will not slump as much as elsewhere.
Wales, along with the north of England, will see the smallest fall in house prices despite seeing the fastest rate of growth in house prices during the pandemic, according to Capital Economics.
In comparison, London house prices will fall by 12% over the next two years as buyers in the country’s most expensive markets are hit by a slump in demand. In the South East, the second most unaffordable region in the nations of the UK, property prices will fall 9%.
The UK as a whole will see an average price fall of 7% by the end of 2024, they said.
Andrew Wishart of Capital Economics said that “housing market activity will slump in 2023 to its lowest level in over a decade”.
“Areas where house prices are highest relative to incomes are most vulnerable. London and the South East are therefore likely to see the largest falls and the North and Wales the smallest,” he said.
Meanwhile, estate agents Zoopla’s monthly house price index rose by 8.3 per cent in August compared with the same period last year.
Despite suggestions that a looming recession, double-digit inflation and higher interest rates might lead to a cooling off of the housing market, Wales recorded the largest increase at over 10%.
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