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Henry Pryor begs to differ as he alone forecasts house price falls across UK this year

fIXFLO news story

Housing commentator Henry Pryor is forecasting an average drop of 4% in house prices across the UK this year.

He is alone among the housing experts who have given their forecasts to the BBC to predict a drop.

The others, including RICS, Nationwide and Halifax, are all forecasting rises of between 1% and 4% – and citing low supply in continuing to support high prices.

Pryor yesterday confirmed to EYE that he is expecting a price drop and said the market is facing a torrid time.

He said: “Everything points to things going bad from here.

“Money can’t get cheaper, wages are stagnant, London is slipping, Brexit blues will dominate and confidence will therefore lag.

“Because we are in that phase where people worry that what they buy today may be cheaper tomorrow, so they sit on their hands.

“There are more people who MUST sell than there are who MUST buy.

“Everyone is predicting fewer transactions which means (to me) fewer discretionary buyers/sellers and so the majority of sales will be those forced to move.

“Far fewer investors will want to pay top prices. They will want to feel they have a deal, won’t they?

“Yields have to rise and since rents can’t, capital values have to fall.

“I think this year looks really nasty.

“People in London (ok the top end) I speak to will only look at buying back in once prices have fallen by 30% (they have already slipped 10-15%) and even this would just take prices back to 2013.

“But more and more ordinary buyers are making offers: 85% of sales last month were below the guide, according to the NAEA. This is the trend, I think.”

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Source:: Henry Pryor begs to differ as he alone forecasts house price falls across UK this year