Housing Market Performance depends on EU Exit Negotiations
According to a recent report from Centre for Economics and Business Research (CEBR) UK house growth is set to slow from 6% in 2015 to 5.7% in 2016 and 2.2% in 2017.
New predictions from leading economic forecaster Cebr show that, despite post-Brexit tremors, house prices are set to increase by 5.7% over 2016 as a whole, however, given that the average price increased by 8.0% year-on-year in Q1, a slowdown will materialise in the second half of the year.
Nina Skero, Cebr Senior Economist and main author of the report, said: “Although Brexit has certainly sent shockwaves Cebr expects the housing market to slow down but not plummet.
“Years of underbuilding mean that demand would have to fall very dramatically to meet the low level of supply increases.
“Keeping in mind that construction companies are very likely to limit their output further in light of Brexit, price pressures will also come from the supply side.
“Property in London will, however, be more impacted than elsewhere in the country. The capital’s status as a safe haven is under threat, a relatively high share of its residents are non-UK nationals and the sectors facing the greatest uncertainty following Brexit e.g. finance are concentrated in London.
“Therefore, Cebr expects London prices to grow by 6.8% in 2016, but fall 5.6% in 2017 before returning to growth in 2018 and beyond”.
To read the full report from CEBR click here
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