House prices to fall next year on Brexit uncertainty, Countrywide predicts

UK house prices will fall by 1% next year as Brexit uncertainty weighs on the market, according to predictions by Countrywide.

All regions across Britain will be affected, except Scotland where prices will remain unchanged, the estate agency said.

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%.

London’s prime real estate market is forecast to be hit the most by the slowdown with the biggest impact likely to be this year. The most expensive parts of the city, including Westminster and Kensington, are projected to decline 6% in 2016 and to stagnate next year.

In Greater London, prices will drop 1.25% next year before picking up 2% in 2017.

“Forecasts in the current environment are trickier than ever as the vote to leave the EU has thrown up many risks,” said Fionnuala Earley, Countrywide’s chief economist.

“Our central view is that the economy will avoid a hard landing. However, the weaker prospects for confidence, household incomes and the labour market mean that we do expect some modest falls in house prices.”