How long will the housing market slump last?

How long will the housing market slump last?

9:52 AM, 31st January 2023, About A year ago 5

Text Size

Falling house prices will only last a couple of months, according to a new report.

The findings from GetAgent reveal that while 155,000 home sellers could be hit by a price drop, the organisation says that price depreciation will only last a matter of months before the market rebounds.

The estate agent comparison website has used research about the property market going back to 2005 to make its prediction.

The first signs of a house price downturn

Co-founder and chief executive of, Colby Short said: “Last week’s House Price Index revealed the first signs of a house price downturn, with the monthly rate of growth dropping for the first time since October 2021.

“This may understandably come as a cause for concern for the nation’s home sellers, but the chances are they have nothing to worry about in the long-term.”

‘Downward price movement is generally short lived’

He added: “The research shows, any period of downward price movement is generally short lived, not to mention often marginal.

“Of course, historic data can only provide insight into the past performance of the market, and it certainly doesn’t provide a guarantee of future market trends.

“But while we may have seen a slight reduction on a month-to-month basis, the overall market is still in very fine shape and sellers remain in a very strong position as a result.”

Periods of house price decline

The firm’s findings show that across Britain, there have been 32 periods of house price decline since 2005.

And most of these have been single monthly declines, with the worst lasting 10 months.

On average, these periods of falling house prices have lasted just 2.2 months.

In contrast, there have been 32 periods of buoyant house price growth, lasting 4.4 months on average, with the longest running for 19 months from 2015.

During the buoyant periods, an average of 381,452 homes were sold, meaning an estimated 85,961 home sellers per month benefitted from appreciating property values.

Boom and bust

England is home to the strongest market when it comes to boom and bust with the average period of house price decline lasting 2.3 months versus an average of 4.6 months when house prices have climbed.

Scotland is home to a more balanced market, with house prices falling by an average of two months, whilst periods of house price growth last just 2.6 months on average.

Wales is home to the lowest average period of house price decline at 1.5 months, although periods of property price decline only last for an average of 2.3 months.

Share This Article


Chris Rattew

11:28 AM, 31st January 2023, About A year ago

Such matters are difficult to predict. However, it is worth planning ahead for sales and purchases according to the way the market moves. I am less optimistic about prices from the seller's point of view, and more so from the buyer's viewpoint. We are not intending to sell or buy ourselves. Be prepared for a crash, but it may not come.


13:36 PM, 31st January 2023, About A year ago

The Bank of England needs to understand that when they raise interest rates they aren't just screwing inflation down...they are also screwing the economy.

Even Gordon Brown understood that the UK housing market drives the UK economy. In the wake of the response to the Covid crisis small business had unprecedented levels of debt. The UK property market (both owner-occupiers and PRS) is leveraged. Forcing interest rates up negatively affects the entire economy.

The Forever Tenant

14:27 PM, 31st January 2023, About A year ago

With what is happening right now, I don't think that raising interest rates will help. This not the usual kind of inflation that we are used to.

Before, raising interest rates was about trying to encourage people to put their money into savings instead of spending it. But people don't have the spare funds to save, so it doesn't work.


14:32 PM, 31st January 2023, About A year ago

Reply to the comment left by The Forever Tenant at 31/01/2023 - 14:27
And before, small business (the engine of employment) wasn't carrying as much debt and the housing market wasn't as leveraged. Small business will retrench because it will have no choice.

Judith Wordsworth

12:57 PM, 4th February 2023, About A year ago

Reply to the comment left by The Forever Tenant at 31/01/2023 - 14:27
Raising interest rates is now, I think, about stopping the consumer spending on "unessential I want things" as opposed to "I need things" and living within their means. ie the latest iPhone/Andoid phone, TV/internet subscriptions, gadgets, jewellery, designer clothes, restaurants and take-aways etc etc etc

Price of fuels are different as dependent on other countries, cartels etc etc.

Shows my age but I remember interest rates at 15%.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now