House prices will peak later this year before dropping by around 5% in 2023 and 2024, economists have forecasted.

Capital Economics (CE), an independent economic research consultancy, now thinks prices will drop in the next two years reversing around a fifth house price growth since the start of the covid-19 pandemic. 

It says price growth this year will be stronger than previously anticipated, due in part to limited amounts of available housing stock and will hit 9% year-on-year in the final quarter of 2022.