Property values have fallen by as much as 14.5pc taking inflation into account
House prices have been on a downward trajectory since they peaked last year, with property values now thought to have fallen more than 5pc.
At first glance, the drop seems small – but when inflation is taken into account, the drop is far greater.
In fact, property prices may have fallen as much as 14.5pc according to Capital Economics. The research consultancy is forecasting a peak-to-trough fall of 20.8pc in “real terms”.
Neal Hudson, of analysts BuiltPlace, said high inflation and rising wages “have done the larger part of the lifting of the price correction we’ve seen so far”.