House prices will fall by 9 per cent by 2024 thanks to high interest rates and the economic downturn, the Office for Budget Responsibility (OBR) has predicted.
It marks a reversal in a trend which saw house prices rise by 15.5 per cent in the year to July, with an increase now not forecast to happen until 2025.
Living standards will also fall by the greatest amount since records began, the OBR has predicted.
In forecasts produced alongside Jeremy Hunt’s Autumn Statement, the OBR said living standards will fall by 4.3 per cent in 2022/23. However, it has said this fall would have been far greater without the financial support announced by the government.
The fall in living standards over the next two years will mean the progress of the last eight years will be wiped out, the OBR said.
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