The ever-present debate on the trajectory of house prices continues, with expert opinions sharply divided. Some analysts predict a dramatic double-digit percentage decline in the short to medium term. In contrast, others deny the possibility of a substantial drop in property prices, pointing to the ongoing supply-demand imbalance across the UK.
Charlie Lamdin, a notable property commentator, forecasts an unprecedented 35% fall in house prices from peak to trough, spanning over an estimated two to three years. Lamdin, founder of Best Agent and host of the popular ‘Moving Home with Charlie’ series on YouTube and TikTok, could cause considerable alarm among homeowners facing a potential plunge in their property’s value. His claim might also dishearten estate agents keen on promoting a buoyant market.
Last week, property portal Zoopla reported an increase in the percentage of sellers compelled to accept a markdown of 5% or more off the asking price to secure a sale – the highest rate since 2018. The interplay of mortgage rates and cost-of-living pressures has equipped buyers with an upper hand in negotiations, a significant shift from recent years. Zoopla’s data suggests that 42% of sellers are accepting over 5% off the asking price to finalise a deal, with 15% accommodating discounts exceeding 10% of the initial asking price.
Richard Donnell, executive director at Zoopla, recognises that the housing market and homebuyers’ resilience will be put to the test as mortgage rates rise. However, he predicts far less drastic price falls.
“We still expect house prices to be 5% lower over 2023,” he shared.
The contrasting predictions prompt the question – who is more accurate in their pricing forecast?
To address their differing views on the extent of the projected national house price dip, Donnell appeared on Lamdin’s online channel for a live debate.