Our views that mortgage rates will continue to drift lower, the supply of new homes will remain tight and that there will be more high loan-to-income mortgage lending suggest house prices will rise by 3.5% in in the year to Q4 2026 and by 3.0% in the year to Q4 2027. But the tax rise on expensive homes announced in the Budget will probably keep the top end of the market relatively subdued. (Clients can explore and download all our UK housing forecasts in our UK Housing Data Dashboard.)