Monday, March 26, 2012
House prices continue to be unaffordable albeit at a slower rate.
The Office for Budget Responsibility released its data post-Budget, forecasting that house prices are set to dip 0.4% this year â€“ a little greater than the 0.2% drop the OBR forecast last November. Next year, it expects house prices to go up by 0.1%, and by 2.5% in 2014. However, because inflation forecasts are set to be 2.3% next year and 2.5% the year after, in real terms house prices will fall. House price inflation is forecast to overtake general inflation in 2015, when house prices are forecast to grow 4.5% and general inflation is predicted to be 3.6%.