The recent strong pace of house price gains is unlikely to last as income growth is set to remain subdued. We expect house prices to rise by around 5% next year and in 2021. A rebound in house prices is good news for vehicle and furniture sales, but construction activity will probably fall for a few more quarters. We reiterate our forecast that GDP growth will rebound from 1.7% this year to 2.0% in 2020.
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