House prices ‘cannot defy gravity forever’


In the Media

Christopher Snowdon writes in The Telegraph

Julian Jessop writes for The Express

IEA Economics Fellow Julian Jessop has written for The Daily Express discussing new data showing a one per cent decrease in house prices between May and June, the first recorded fall for a decade.

Julian wrote:

“The trend is likely to continue as the market adjusts to the reality of higher interest rates. The same has happened in the US and in the rest of Europe. And even if there is still a shortage of houses, prices cannot defy gravity forever. Prices could easily fall by 10 per cent this year. It’s estimated UK house prices rose by nearly 75 per cent from the end of 2012 to last December.”

Read Julian’s full piece on page 16 of The Daily Express (08/06/2023).