AN ESTATE agent has predicted a crash in the housing market due to rising inflation.

Harrisons Estate Agent says the rising inflation could reach almost nine per cent by late spring, and with wages only increasing by three or four percent, household income will fall.

This could lead to a drop in house prices as UK household incomes have been the most consistent indicator of growth or drop in house prices.

Speaking to the Echo's sisiter paper The Bolton News, Matthew Fish at Harrisons, which is based in the northern city, said: “With less money in people's pockets, people's inclination to spend the money they do have could also be curtailed.

“People's savings are at an all-time high, yet many will decide to sit on the cash, instead of spending it, especially as consumer confidence has dropped to minus 26 on the GfK index.

“All this can only mean there is going to be a house price crash.”

Coupled with higher petrol prices and the staggering increase of household bills, it seems almost impossible for people to buy a house.

Matthew said: “Increasing energy prices, rising inflation, an increase of sanctions, and a probable drop in consumer confidence and spending in the aftermath of the conflict will knock the post-pandemic recovery globally, which will lead to a recession around the world, including the UK.”

To assure potential homeowners, Matthew advises that the people losing out will be those who moved house in September 2019 if they sold after the price crash.

But many people do not move house after two years of living in one they just bought.