LONDON, June 2 Reuters A crash in British home prices is unlikely but they will dip further this year than earlier thought as the cost of living crisis and rising borrowing costs take their toll on indebted buyers, a Reuters poll showed.

As in much of the world, home prices soared during the COVID pandemic as buyers sought additional living space and took advantage of low interest rates, but with high inflation proving sticky the Bank of England embarked on an aggressive rate hiking path and is likely not done yet.

Average house prices were expected to fall a modest 3.0 across 2023, deeper than the 2.4 drop predicted in a February poll but nowhere near the crash some were expecting, the May 1631 poll of 23 market specialists showed. The lowest forecast was for a 10.0 fall.

They are then expected to flatline in 2024 and rise 3.1 the year after. In the last poll they were expected to rise 1.0 next year and 3.5 in 2025.

The majority of pundits and doomsters are being proved wrong it is not an edge of the cliff moment. Yes, prices will fall this year but by single digits, said Tony Williams at consultancy Building Value.

From peak to trough home prices will fall 7.5, the median in the poll showed. Forecasts ranged from a 4.3 dip to a drop of 17.5.

Persistent core inflation and wage pressures will prevent the Bank of England from cutting interest rates until 2024, which means mortgage rates won39;t fall any further until next year, said Andrew Wishart at Capital…