Knight Frank cuts UK house price forecasts on economic headwinds
Original Article Summary
Knight Frank has downgraded its near-term UK house price forecasts whilst raising longer-term projections, citing current economic uncertainty alongside more optimistic assumptions about future government policy. The estate agency now expects UK house price growth of 1.5% in 2026, followed by 3% in 2027 and 4% in 2028. The post Knight Frank cuts UK house price forecasts on economic headwinds appeared first on PropertyWire.
Investor Analysis
Knight Frank has cut its 2026 UK house price forecast from 3% to 1.5% citing mortgage rate pressure, weak sentiment, and geopolitical uncertainty, while raising longer-term projections on anticipated policy change. Rental growth is expected to persist as the Renters' Rights Act tightens supply.
Investor Relevance
Investors need to revise near-term capital growth assumptions downward while pricing in persistent rental demand — the Renters' Rights Act supply squeeze reinforces a yield-over-growth strategy in the short term, while the 2029+ political outlook may support longer-horizon hold strategies.
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