Economics

British house prices could drop 40 per cent, analyst warns

Neal Hudson says outlook is ‘terrifying’ after last week’s mini-budget, with market accelerating towards a severe housing crash

Property for sale signs in London: the British housing market could be headed for a major crash over the coming months. Picture: Bloomberg

British house prices could fall by as much as 40 per cent in response to the expected surge in interest rates, a veteran housing market analyst has warned.

Neal Hudson, a housing market analyst and former head of research at real estate firm Savills, said the British housing market could be headed for a major crash over the coming months.

“Since last week’s mini-budget, [the outlook] has turned terrifying. There is still a great deal ...