House prices could fall by as much as 15 per cent if interest rates continue to rise, economists have warned.
The apocalyptic warning on property prices has been triggered by the sharp fall in the value of the pound after it hit its lowest level against the dollar following the uncosted Tory mini-budget last week.
Ray Boulger, from the mortgage broker John Charcol, has predicted a 10 per cent fall in UK house prices next year, while analysts have warned prices could drop as much as 15 per cent. Boulger said the gilt market meltdown, and the risk of interest rates rising to six per cent by next summer “makes it very difficult to know where to price mortgage products”.
