UK house prices are expected to increase by 2.5% in 2025, with a 1.5% increase in the four weeks to November 17, driven by a rise in buyer demand and sales agreed. The housing market is resilient, with an anticipated 5% increase in sales compared to 2024, due to factors such as faster income growth and lower mortgage rates. While mortgage rates are not expected to decrease further in 2025, lenders are innovating affordability assessments to support housing demand amid potential economic challenges.
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