UK House Price Growth Forecast Downgraded Amid Interest Rate Concerns

Hamptons revises its long-term house price growth forecast due to persistent high interest rates and recent budget measures.

Hamptons has reduced its 2026 house price growth forecast from 5% to 3.5%, citing higher interest rates and a sluggish economy.
The Bank of England's recent rate cut to 4.75% has not alleviated concerns about long-term inflation and interest rates.
Government spending and taxation increases are expected to push inflation higher, delaying the inflation target to 2027.
The end of temporary stamp duty thresholds in 2025 is anticipated to lead to a rush in property sales early that year.
Rents are projected to rise by 17% nationally as landlords face higher taxes and mortgage costs.