Strong Relationship Between House Price And GDP Growth

News at Waterfords | 13/06/2022

Waterfords Estate Agents in Camberley, Chobham, Fleet and Yateley regularly bring you the very latest property market and house price news on their expert blog.

We have recently discovered that there is a very strong relationship between GDP growth rates and house price growth – this relationship stretches all the way back to the early 1980s.

Assuming this historic relationship holds true, we can expect house price growth to slow later this year, as GDP growth subsides.

Over the last few months there has been a rapid change in the global geopolitical climate and the outlook for the UK economy. UK GDP growth is forecast to be weaker by the end of 2022 and lasting into 2023.

The 30 or so economists who contribute to the consensus forecasts compiled by HM Treasury currently believe that GDP growth will slow to 1.3% in 2023.

Whilst house price growth over the year to end Q1 was the strongest since 2004, house price growth will likely be lower by the end of 2022. Current consensus forecasts suggest slower growth but not price falls for house prices.

How much is my house worth?

If you are thinking of selling or letting your property in the Camberley, Chobham, Fleet or Yateley areas then Waterfords is your trusted, independent estate agent. We have been helping people move home throughout Surrey, Hampshire and Berkshire since 1995 throughout many property market challenges. Get in touch to find out how much your home is worth or to discuss your property journey, we'd love to help you:

  • Camberley: 01276 66566
  • Chobham: 01276 858589
  • Fleet: 01252 623333
  • Yateley: 01252 870222

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We are waiting to help you achieve as stress-free move as possible.

Source: Dataloft, Nationwide, HM Treasury Consensus Forecasts May 2022, ONS