House prices to fall in big economies 'but crisis on scale of 2008 unlikely'

ESRI says ECB interest rate hikes will affect prices but that the supply shortage will exert upward pressure in Ireland this year

The price of homes in major economies such as Canada and Britain are set to fall but shortage of stock will push against that trend in Ireland. Stock picture

House prices will fall in major economies, including by 20% in Canada and between 5% and 10% in Britain, but there will be no repeat of the 2008 crisis, a leading economics consultancy has predicted.

Capital Economics also forecast house prices will fall by 15% in Australia and by 10%-15% in Sweden as central banks around the world hike interest rates.