Housing market confidence improved during 2024, on the expectation of interest rate cuts. Even though the latest cut did not flow through to fixed rates, it gave a further boost to sentiment.
Consensus forecasts for price growth are 3.4% in 2025 and 4% in 2026.
We expect rental growth to settle back to its long-term trend after a period of exceptionally high rates of growth.
Consensus forecasts for rental growth are 3.7% in 2025 and 3.3% in 2026.
Confidence in Buy-to-Let investment has been dealt another blow by the extra surcharge on stamp duty for additional properties (raised to 5% in the October 2024 budget). Source: Dataloft by PriceHubble, HM Treasury Forecasts, Savills, Knight Frank, JLL, CBRE. November 2024
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