In the News
First Annual Fall in UK House Prices since 2012
The UK housing market has experienced its initial annual decline in prices since 2012.
The speaker presents a chart illustrating the annual rate of house price inflation, highlighting recent disinflation and a weakening pace in price increases.
Current Average Property Prices:
The average property price in the UK is £291,000, with variations in England (£310,000) and Scotland (£195,000).
The speaker notes significant local and sub-regional differences in property prices.
Global Real Property Price Trends:
The video compares real property price trends in Spain, Ireland, and Germany. Spain faced a sharp fall during the global financial crisis, while Ireland experienced a recent increase and Germany saw a decline.
Factors Influencing Falling House Prices:
Increasing mortgage costs are identified as a significant factor contributing to the decline in house prices. The video presents data on rising mortgage interest rates, anticipating consequences on the housing market in 2024.
Potential Consequences of Falling House Prices:
The speaker discusses potential economic effects, including a negative impact on household wealth and consumer confidence.A slowdown in the construction sector is anticipated, affecting output, investment, and employment, with potential repercussions on government revenue through reduced stamp duty and corporation tax.