UK house price growth forecast to halve in 2017

House price growth will more than halve next year, according to a poll of economists by Reuters, as the impact of the Brexit vote drags on consumer confidence, household incomes and the labour market.

Over 2016, average UK house prices are forecast to be up 2.8% before slowing to 1.3% in 2017 and then rebounding to 2.4% in 2018.

London's property prices are expected to be among the hardest hit, with an average 2% gain in 2016 reversing to zero growth in 2017 before resuming their ascent in 2018 with an estimated 2% increase.

This compares to estate agency Countrywide's report on Monday that estimated UK house prices will fall by 1% in 2017 next year as Brexit uncertainty weighs on the market, with all regions affected except Scotland where prices will remain unchanged.

Prices are expected to increase 2% this year, marking a rapid slowdown from last year’s 6.5% growth and 2014’s 8.5% increase. Countrywide said prices are likely to recover in 2018 but at a modest 2%.

Countrywide calculated London’s prime real estate market, including Westminster and Kensington, will decline 6% in 2016, whereas Greater London will see prices drop 1.25% before picking up 2% in 2017.