UK house price growth will be cut by almost half by 2018, according to predictions from the Office for Budgetary Responsibility (OBR).
The OBR has released its predictions for house price growth along with chancellor Philip Hammond's first (and last) Budget today, and it seems house price rises will be tempered over the next five years, dropping from an annual inflation of 7.6 per cent in 2016 to just four per cent in 2018.
Then, in 2019, growth will edge upwards to 4.4 per cent, reaching 4.6 per cent in 2021.
The house price trend is set to follow on from a squeeze in disposable incomes; the OBR has forecast zero growth in disposable incomes this year.
Commentators have argued that Hammond should have done more to get young people on the housing ladder; many were hoping for cuts to stamp duty land tax.
Glynis Frew, chief executive of Hunters Property, said: “It was unsurprising but still a shame the chancellor did not address the issues with stamp duty. Stamp duty should be slashed for first time buyers, it is absurd to think first time buyers in London and the South East are finding themselves in the third tax band and are therefore paying a whopping five per cent when first stepping onto the ladder.
"It is no secret there are less first time buyers entering our market than ever before and this unfortunately has a knock-on effect for second steppers and further up the ladder.”