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2025-09-16 19:33:54
[UK House Price Growth Slows] ⑴ The UK real estate market is showing signs of improvement, with several institutions predicting slower house price growth nationwide and in London than previously expected, improving affordability for first-time buyers. A recent survey shows that a staggering 92% of respondents believe affordability for first-time buyers will improve. ⑵ Despite the Bank of England's repeated interest rate cuts, market concerns that the Chancellor of the Exchequer may raise taxes in the upcoming budget to plug the fiscal gap, coupled with weakening job market momentum, have led to a forecast of 2.6% house price increases in 2025 and 3.1% in 2026, a significant decline from the May forecasts of 3.5% and 4.0%, respectively. ⑶ In London specifically, the projected house price increase has been revised down from the May forecast of 3.0% and 4.0%, to 1.9% in 2025 and 2.7% in 2026. Analysts point out that policy stances on wealth creators and potential tax adjustments for high-net-worth individuals may affect the willingness of domestic and foreign investors to invest in the London market, thereby putting pressure on local housing prices.
