AN estate agent has predicted house prices in Worcester will fall towards the end of the year.

The news comes after a wide variety of cost of living expenses have risen significantly across the UK.

Daniel Lewis, founder and managing director of FreeAgent247, said before the prices fall they could first rise up to 7.4 per cent.

He said: "The current state of the property market in Worcester remains particularly buoyant for sellers with demand continuing to outweigh supply at present meaning that forecasters say the average UK price will go up by 7.4 per cent this year.

"As we move into the later part of the year, inflation will likely bring a new challenge to the forefront but it may indeed create a new market as people look for more cost-effective homes to run meaning that the supply of homes may begin to match the demand as the lines move closer together, which predicts a more stable market into 2023 with prices forecast to increase by a marginal 1.3 per cent before accelerating to 1.5 per cent, 2.5 per cent and 3.1 per cent in subsequent years.

"In summary, the market will balance out as we push into 2023 but there will still be short and indeed long term gains for the homeowner. "

Worcester News: Daniel Lewis, Founder and Managing Director of FreeAgent247. Daniel Lewis, Founder and Managing Director of FreeAgent247.

House sales in February were around a fifth lower than the same month in 2021, according to HM Revenue and Customs (HMRC) figures.

An estimated 112,240 transactions took place in February across the UK, which was 20.8 per cent lower than in February 2021, HMRC said.

The total was, however, 4.4 per cent higher than in January 2022.

A stamp duty holiday in England and Northern Ireland ended completely from October last year, after being gradually phased out.

Similar holidays had also taken place in Scotland and Wales.

On Monday (March 21), property website Rightmove reported the average price tag on a home in Britain has topped £350,000 for the first time.

Rightmove said average asking prices are more than 10 per cent higher than a year ago and are being stoked by an imbalance between buyer demand and the number of properties available for sale.