RBC Capital Expects UK Housing Prices to Rise in 2025

RBC Capital Markets analyst Anthony Codling indicated that, referencing the Halifax House Price Index, despite a 0.2% drop in December, UK house prices are expected to rise in 2025. He noted that while uncertainty remains regarding the country's broader macroeconomic outlook, housing demand continues to outstrip supply. Codling stated, "Rising living costs, persistently high mortgage rates, and budget concerns have not diminished the desire for homeownership,” adding that “it is unlikely that today’s housing price figures will change the minds of potential buyers, as the general sentiment in the market favors stability rather than significant increases or decreases in the short term."