House prices to slide next year

HOUSE prices are expected to fall by 5 per cent across Britain next year, research has shown.

Zoopla’s House Price Index revealed the reduction is likely to fall in line with the ‘new norm’ of -5 per cent mortgage rates across Britain.

Zoopla executive director Richard Donnell said: ‘We don’t expect to see any impact on pricing levels between now and December – this will only start to materialise in early 2023.

‘It takes several months for pricing to adjust in the face of weaker demand.’

It comes as mortgage rates soared to 6 per cent – the largest hike for new buyers since the 1980s – after Liz Truss’s mini-budget shocked the markets in September. It also caused a 2 per cent drop in demand in Scotland.

Mr Donnell added: ‘The outlook for the year ahead hinges on the trajectory for mortgage rates, which impacts the buying power of households who are already facing higher living costs.’