There are many different predictions for UK House prices floating around. One of the most reliable predictions is said to come from the forecast of city bankers. House prices can be predicted using a new tradeable derivatives contracts, which in effect is trying to predict future house prices.
These are not just ideal speculations, if tradeable contracts are expected to fall by 7%, this means that bankers are putting their money where their mouth is, so to speak. There has been a big increase in trading of these tradeable forecasts in recent years.
Other forecasts for House Prices include:
- Nationwide House price forecast 0%
- Capital Economics 3% fall
- Johnathan Davis of House Price Crash -35% (
) - Nadeem Walayat of Market Oracle -15%
That’s just part of the industry; you never really know what is going to happen. You just have to be prepared.