The economic backdrop continues to look favourable, which will help to support buyer demand in the coming years. But with houses already so expensive, prices will need to rise slower than incomes if activity is to be boosted. As a result, we see annual house price growth slowing further to 2% by the end of 2017, staying at 2% in 2018, before edging up to 3% in 2019. That, in turn, will permit a gentle rise in transactions and mortgage approvals across our forecast period.
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