Ashley Webb, senior UK economist at Capital Economics, said the house prices’ resilience “is unlikely to last” given his prediction that mortgage rates will continue to rise over the coming months.
Entering 2026, Webb had thought that house prices in the UK would rise, on average, by around 3.5 per cent this year, but he has since reduced that to 1.5 per cent. On Friday, he said there was a scenario where prices could increase by just 0.5 per cent in 2026 if mortgage rates continue to edge up.