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.
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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.