Halifax reports that affordability is now at its strongest since late 2015, after slowdown in price growth
Halifax’s Amanda Bryden reckons UK house prices will rise “gradually” next year, saying:
“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”
The outlook for 2026 rests on the path of mortgage rates and the resilience of household incomes. Greater clarity post budget and the prospect of lower borrowing costs give the market a firmer footing, but affordability will remain the defining constraint.”
Clarity has now returned, but an array of tax rises, which include an income tax threshold freeze, will increasingly squeeze demand and prices. Offsetting that is the fact that mortgage rates are expected to drift lower next year as the base rate bottoms out at around 3.25%.”
