To ask Her Majesty's Government what assessment they have made of the impact of changes in the level of house prices on the UK’s economic recovery.
16 September 2021
HM Treasury does not prepare formal forecasts for house prices or the outlook on the UK economy, which are the responsibility of the independent Office for Budget Responsibility (OBR). In its March forecast, the OBR expects that GDP will grow by 4% in 2021 and return to its pre-Covid peak in 2022. The OBR also forecasts annual house price growth of 5% in 2021.
Further details can be found in the OBR’s latest Economic and Fiscal Outlook published in March 2021: https://obr.uk/download/march-2021-economic-and-fiscal-outlook-executive-summary/
The OBR will publish an updated forecast on 27 October 2021.
The Office for National Statistics (ONS) also publish estimates of house prices in the UK. The latest available data shows that UK average house prices reached £266,000 in June 2021