As the UK enters a recession, experts forecast that the property market will cool in 2023

UNITED KINGDOM: According to industry experts, the property market will cool off significantly in 2019 following a rocky 2022 as the UK struggles with a recession and rising mortgage rates. (Reported by news source)

House prices have already begun to decline month over month as the cost-of-living problem has gotten worse due to surging inflation and rising interest rates. The average home price fell 2.3% from October to November, which is the most since the start of the 2008 financial crisis.

The Bank of England is anticipated to keep raising interest rates through 2023, from their current level of 3.5% to a peak of approximately 4.75%, further depressing consumer demand.

Although some warn that in the worst-case scenario, house prices could drop by 15% to 20%, property specialists predict that this would likely lead to property price losses of between 5% and 12% next year. According to the most recent figures from the Office for National Statistics, house prices increased 12.6% in the 12 months leading up to October.