The continued weakness in the housing market over the first six months of this year and the cracking labour market means we now expect the recovery in house prices to start later and be slower. But bigger falls in mortgage rates than we previously thought in 2026 will propel prices next year. We now expect house prices in the year to Q4 to rise by 2.0% in 2025 (3.5% previously), by 5.0% in 2026 (4.5% previously) and by 3.5% in 2027.
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