High mortgage rates will limit house price gains to just 1.5% in the year to Q4 2027 and, by boosting rental demand against a tight supply backdrop, support an acceleration in market rents growth from 2.5% this year to about 4.0% in 2027. As mortgage rates gradually fall back, house prices may rise by a better 3.0% in the year to Q4 2028 and markets rents growth may cool to around 3.5% in 2028.