If a large number of the over one million homes being kept vacant as the owner does not wish to sell were to be brought to market, house prices are likely to drop by 5% to 10%. But while slowing house price expectations may persuade some owners to sell, the fall in interest rates we expect will keep the opportunity cost of an empty home low. That will prevent a surge of supply over the next couple of years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services