The acceleration in house price growth in January suggests the housing market has maintained momentum as the wider economy is losing it. What’s more, our forecast for mortgage rates to fall further than is widely anticipated suggests the market will continue to shrug off the recent weakness of the economy. We think a decent recovery in transactions will mean house prices will rise by around 3.5% this year and by 4.5% next year, which would be a bit stronger than the consensus forecast.
We’ll be discussing the outlook for the UK housing market in a 20-minute online Drop-In at 3pm GMT on Wednesday 5th March. (Register here.)
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