While some leading indicators point to a sharp slowdown in house price inflation in the coming months, the smaller rise in mortgage rates since the start of the Iran war than in past shocks and the more favourable economic backdrop mean the risk of big outright falls in nominal prices is limited this time. We still think house prices will rise by 1.5% in the year to Q4 2026 in our baseline scenario for energy prices. Within the rental sector, higher taxes for landlords and stricter regulations will continue to squeeze supply. That’s why we expect market rents growth to accelerate from 1.9% in January to 2.5% in 2026 overall and to 3.5% in 2027.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
