Medium-term outlook – sales price forecasts have improved

• Mid year is a good time to reflect on the market outlook for the rest of 2024 and beyond. Notably, recent revisions to house price forecasts show a more optimistic outlook for this year.

• Whilst cuts in the Bank of England bank rate have yet to materialise, they are still expected in 2024. Whilst falls in the cost of mortgage debt have been tentative to date, this coupled with improving interest rate expectations and an improved economic outlook has created more capacity for house price growth this year.

• Given there is still a misalignment between supply and demand, strong rental growth is forecast for 2024 but moderating to levels more in line with earnings growth beyond. Source: #Dataloft by PriceHubbble, HM Treasury Forecasts, Savills, Knight Frank, JLL, CBRE. June 2024