Alex Kerr, UK economist at the consultancy Capital Economics, said the slowdown in price growth was “not too surprising” given the rise in mortgage rates at the end of last year. “We doubt that price growth will continue to disappoint and instead think prices will rise by more than most expect this year,” he said. Capital Economics forecasts that the Bank of England will cut interest rates from 4.75 per cent to 3.5 per cent in early 2026.