House prices set to soar

UK house prices are projected to increase by 3.5% this year, driven by lower borrowing costs and a supportive Bank of England, which is expected to cut the bank rate to 3.75% by year-end. According to a poll of 20 housing market experts, prices will continue to rise by 4% next year. Aneisha Beveridge from Hamptons noted: "The slow downward drift in mortgage rates this year should boost prices and sales volumes." However, rental costs are anticipated to outpace house price growth, with a national increase of 4% expected this year. Despite these increases, property values remain constrained by higher taxation and a weak economic backdrop, with inflation projected at 2.8% this year. 

The I (25/02/2025)