House price growth could decelerate over coming years

James Sproule, chief economist at Handelsbanken UK, argues in the Sunday Telegraph that house price growth in the UK is likely to slow because the key driver behind past surges - widening income distribution - has largely stabilised. From the 1980s, a growing number of high earners bid against each other for a limited housing supply, pushing prices up. Today, income disparities have plateaued, and the "wall of money" fuelling housing demand has diminished. While property remains a safe store of wealth, Sproule says future returns are unlikely to match the exceptional growth seen over the past 50 years. 

The Sunday Telegraph (24/11/2025)