Property experts have predicted that house prices will fall by 10% in 2023 as interest payments reach highs not seen since the 2008 financial crisis.
Following the chancellor's mini-budget announcement nearly 300 mortgage deals were withdrawn by banks and building societies, and the offers remaining on the market will mean huge borrowing costs for potential buyers which will reduce how much they can pay for a property. Therefore, if interest rates remain high then property prices are expected to fall.
The housing market has a huge impact on the rest of the economy, because people who have bought a house are more confident in spending their money on other things. If everyone is saving for a deposit they don't spend their money in businesses and boost the economy.
