The stagnation in the housing market is set to continue for the foreseeable future, as the combination of high house prices and rising mortgage rates, which are set to exceed 3% by 2020, hold the market back. Meanwhile, house price inflation will cool to 1% by 2019, as rising interest rates further constrain buyers’ ability to bid up prices. And in London, we expect a modest fall in house prices – of 2% this year, and 5% next year.
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