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House prices have stalled – and depending on what Rachel Reeves does in the Budget on 26 November, they may start to fall in 2026. In London that is already happening.

This summer has seen a marked change in the mood of the market, particularly for more expensive homes in the capital. Last year house prices were resilient, rising by around 4 per cent, according to the Nationwide Building Society .

That was despite the problems of affordability. At the end of 2024 Nationwide acknowledged that the increase in stamp duty would cause uncertainty, but still expected prices to rise by between

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