Housing market is likely to remain subdued for the next couple of years according to PWC
UK economic growth held up better than expected in the six months following the Brexit vote, particularly as regards consumer spending. But growth slowed in the first half of 2017 as inflation rose sharply, squeezing household spending power, according to PWC UK Economic Outlook report July 2017.
The PWC states: The housing market is likely to remain subdued for the next couple of years, but lack of supply and rising demand will keep property prices rising in the longer term. Read the report for UK in full click here.
In Scotland, Brexit uncertainty has negative impact on both Scottish GDP and Housing Market according to PWC.
In its latest report PWC predicts the Scottish economy will grow by 1.2% this year, and by 1.1% in 2018, it also identified a year-on-year decline in house purchases.
Lindsay Gardiner, regional chair for PwC in Scotland, said: “While some may see concern at the fact Scotland and Northern Ireland are at the bottom in terms of GDP improvement, there is actually very little separating most of the UK. This year the best growth we expect any region – except for London – will see is 1.5% and it is 1.4% next year.
“Where concerns should perhaps be focused is around wage growth as many are offsetting limited growth through increased borrowing – which may have a longer term impact via interest rate rises or employment downturn.
“It’s too early to speculate on how the Brexit talks are going to impact growth, however current exchange rates have some offsetting benefits for net exports.
“The main message we are discussing with businesses at the moment is to consider where Brexit may have an impact and to make contingency plans for a number of scenarios, particularly those who may face changes in customs tarrifs or employment challenges.”
Read the report for Scotland in full click here.
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