House price inflation has been forecast to continue this year with prices rising 4.5 per cent before a correction in 2022, according to Oxford Economics. According to the housing report, a slowdown in buyer activity – as suggested by the Royal Institution of Chartered Surveyors (RICS) and the Bank of England – will see house price growth slow to zero by the end of this year. Then in 2022, prices will decline between four and five per cent. Homeowners and high earners driving market activity Forbearance which suppressed a rise in unemployment and propped up household incomes has allowed people to continue paying their mortgages and rent, evading the possibility of repossessions and arrears. However, younger people or those on low incomes who have been financially impacted are less likely to be homeowners or looking to purchase. This indicates buyer activity has been driven by those who were already better off and managed to save more cash during the lock down which contributed to purchases and fueled higher property prices.
House prices set to keep rising this year – Oxford Economics
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https://www.themortgagebureau.co.uk/first-time-buyer/house-prices-set-to-keep-rising-this-year-oxford-economics/
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