Buyers wait for more interest rate cuts as London house prices rise just 1.3%

Tom Bill, head of UK residential research at Knight Frank, said: “Demand has increased as more mortgage rates drop below 4%, which will underpin prices while the momentum is maintained. Tariff turbulence has helped push interest rate expectations lower but buyers could be put off if it gets too bumpy. “Inflation caused by new measures such as higher employer national insurance costs remains a risk, which means rates could start heading in the wrong direction again. For now, demand remains solid, especially in needs-driven markets.”