Optimistic Outlook for the UK Economy but Household Budgets to Still Feel Tight

A new forecast for UK house prices has been reported and according to the Office for Budget Responsibility (OBR), house prices are set to decline by 10% against the average peak of last year. The reasoning behind this forecast is due to inflation and higher interest rates. House prices could then begin to rise again in 2026. However, this will come as little condolence to homeowners that will have further financial strains due to a decline in property values and continued higher interest rates.