Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1711
    +0.0017 (+0.15%)
     
  • GBP/USD

    1.2621
    -0.0002 (-0.01%)
     
  • Bitcoin GBP

    55,694.47
    +451.27 (+0.82%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,436.94
    +268.87 (+0.67%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

UK House Prices Will Fall 1% In 2017, Says Countrywide

House prices in the UK are expected to fall by 1% in 2017, according to property group Countrywide (Other OTC: CTYWY - news) .

Highlighting economic uncertainty following Brexit as a key reason, the company says central London is likely to be worst affected but that all regions will feel the effects.

House price growth is predicted to slow to 2.5% for the current year, down from the 4.5% growth Countrywide had expected prior to the Leave vote in June, before declining further to -1% in 2017.

This means people could see a drop in their property value in real terms, but the company expects this will be temporary with prices recovering to see a 2% growth in 2018.

ADVERTISEMENT

Countrywide base their predictions on various economic forecasts for the coming years and their own expectations of how this may affect the housing market going forward.

Fionnuala Earley, Countrywide's Chief Economist, said: "Forecasts in the current environment are trickier than ever as the vote to leave the EU has thrown up many risks.

"Our central view is that the economy will avoid a hard landing, which is good news for housing markets.

"However, the weaker prospects for confidence, household incomes and the labour market mean that we do expect some modest falls in house prices before they return to positive growth towards the end of 2017 and into 2018."

The predictions follow statistics released last week which show that, despite warnings of a severe economic slowdown should the UK vote to leave the EU, retail sales increased by more than expected following the referendum.

As well as Brexit, Countrywide point to the rise in stamp duty as a contributing factor towards the price drops, particularly in the top end of the housing market.

But it says the lack of available housing in the UK will prevent housing values from falling too far.

"There are supports to prices on the supply side from the continuing mismatch of supply," says Ms Earley.

"On the demand side, ultra-low interest rates and the significant discounts available to overseas buyers resulting from the fall in sterling will help to support prices too."