Overview
- A GB News commentator forecasts a short-lived rise in transactions in the first months of 2026 as pent-up demand from late 2025 enters the market.
- Market pricing points to at least one, possibly two, Bank of England cuts this year, with the base rate seen near 3.25% by autumn if inflation trends cooperate.
- Any improvement in mortgage affordability is expected to be uneven because lenders remain wary where job security looks uncertain.
- The rental sector could see less upward pressure on prices alongside higher arrears risk, reflecting early signs of redundancies and slower hiring, especially in retail and hospitality.
- Households hold over £2 trillion in cash per BoE figures, and a shift from saving to spending after potential cuts could lift housing activity, though business costs and migration shifts present countervailing pressures.