The OECD, which produces bi-annual reports on the world’s leading economies, said the UK housing market had helped the country avoid recession and the most likely scenario was a gentle landing. The organisation did however concede there was some risk attached to the current housing market.
Ray Boulger, senior technical manager at Charcol, said: “When an independent report backs my view on the housing market, it is most encouraging. International reports often say things about our economy which we don’t want to hear.”
Tony Jones, managing director of Pink Home Loans, agreed saying the lack of housing supply would continue to drive the UK housing market. He said: “Predictions of doom make for great headlines, but we must be careful we don’t talk ourselves into a recession.”
Meanwhile David Panel, who recently produced the Durlacher report that predicted a 30 per cent fall in house prices, stands by his original conclusions.
Panel said: “Once housing inflation starts dropping, it will be difficult to stop the momentum. First-time buyers will feel less pressure to buy because they won’t be scared of being priced out of the market. Buy-to-let landlords will be tempted to sell some of their properties because they will feel the market may have peaked. This combination will push prices down.”
