As the first economic data release under a Labour government since 2010, the decline in Halifax house prices in June meant that Labour’s tenure got off to a slightly downbeat start. However, while we expect house prices to flatline at best in the coming months, our view that interest rates will be cut from 5.25% to 3.00% by the end of 2025 suggests prices will rise by around 5.0% next year, following a more tepid increase of around 0.5% this year.
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