UK House Prices Suffer Sharp Declines on Mortgage Costs

The video discusses the recent decline in UK house prices, highlighting a 1.4% drop as reported by Nationwide Building Society. It explores factors such as the pandemic, mortgage rates, and economic policies affecting the market. The Office for Budget Responsibility forecasts a 9% drop over two years, but factors like a strong banking sector and fixed-rate mortgages may mitigate this. Historical trends suggest house prices fall quickly but recover slowly, taking about eight years to correct.

What is the forecasted percentage drop in house prices over the next two years according to the Office for Budget Responsibility?

Based on historical data, how long does it typically take for house prices to correct themselves after a fall?