UK Housing

UK Housing Market Outlook

15 January, 2018

Rising rates set to keep market in check

Our forecast for an improving economic backdrop will come hand-in-hand with rising interest rates. As a result, improving real wages and sentiment will be countered by higher mortgage costs. That will keep house price growth below 3% per year in both 2018 and 2019, with London and the South performing the worst. And those same forces will prevent anything more than a modest improvement in transactions over the next two years.

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