Looking across the average of published house price forecasts, UK house prices are expected to soften marginally in 2024 (by an average -2.1%). Renewed price growth is expected to be evident in 2025, with prices forecast to rise by 3.0%.
While perhaps not sufficient to drive strong price growth in 2024, activity levels are expected to pick-up with tentative improvements in affordability and more certainty over the direction of interest rates.
Rental price growth is forecast to outpace sales price growth over the next two years. Although rents are forecast to continue to rise, it is at a more modest pace than the last two years, set to average 3.6% over the next five years.