BIGGEST HOUSE PRICE FALL IN 14 YEARS ...BUT RISE ON WAY

BRITAIN'S housing market will weather the current economic storm and surge back next year, experts predict.

- Giles Sheldrick

The forecast comes after the Lionesses into last 16 heaviest fall in property prices for 14 years as they slumped 3.8 percent in the year to July. Analysts rubbished talk of a crash, with many predicting the worst is over.

While prices might still dip further, the rate of loss will ease before tumbling inflation and rising consumer confidence fan the flames of a full-on market resurgence in 2024, experts said.

James Forrester, of estate agents Barrows and Forrester, said: "Just this week, we've seen a big spike in mortgage market activity, which suggests an uplift in house prices is just around the corner." He added: "As interest rates begin to reduce, this growing market momentum will start to snowball and this will reverse the downward house price trends of recent months."

The average price of a UK home dropped 0.2% to £260,828 last month, according to Nationwide Building Society, a value that is 4.5% or £13,000 below the August 2022 high water mark.

Mortgage costs have also hit their highest level for 15 years with a typical two-year fixed rate now 6.85%. And a five-year deal is at 6.37%, according to financial experts Moneyfacts.

Resurgence

However, the industry consensus suggests rates may be peaking.