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Wealth
City of London

UK House Prices Face 5% Dip Next Year on Mortgage Rate Rises

  • New buyers face biggest rate hit since late 1980s, Zoopla says
  • Buyer demand has dived by a third since mini-budget last month
Updated on

UK homeowners will need to get used to paying more for their mortgages, with the higher costs potentially triggering a property price fall of as much as 5% in 2023.

That drop in house prices would erase the past 8 months of price gains from the average UK home, according to a report from property portal Zoopla. London properties would face the biggest loss of value with 13 months of capital gains wiped out in this scenario, which would see mortgage rates hover around 4%.