British home prices are expected to rise 1.3% this year, below the 1.8% forecast in June, as high mortgage rates and economic uncertainty discourage moves. Median forecasts from a Sept. 7-18 Reuters poll of 16 property market experts put price growth at 2.0% next year and 3.3% in 2028, with 2027 forecasts ranging from no change to a 3.5% increase. The Bank of England (UK central bank) held borrowing costs unchanged, while Governor Andrew Bailey warned that prolonged conflict in the Middle East could require tighter policy. UK inflation reached 3.1% in August and was forecast to average 3.1% this year before easing to 2.5% in 2027 and 1.9% in 2028. Mortgage approvals fell to their lowest level since January 2024 in July, although buyer demand and agreed sales have moved away from recent lows, according to the Royal Institution of Chartered Surveyors. Barratt Redrow lowered its home-completions target, citing wider sector pressures. London prices are forecast to fall 1.4% this year before rising 0.9% in 2027; the average London home cost £646,451 ($864,176) in August. Nationwide rents are expected to rise 3.0% this year and next, then 2.8% in 2028, as fewer landlords offer homes and high borrowing costs push potential buyers into renting.