- UK house price growth set to slow to a halt next year, according to poll of chartered surveyors.
- “Following a pretty lacklustre finish to 2017, the indications are that momentum across the housing market will be lacking as 2018 gets underway,” said RICS economist Tarrant Parsons.
LONDON — The UK housing market is in a rut, and price growth will likely grind to a halt next year, according to the RICS housing forecast for 2018.
RICS, whose predictions are based on a poll of chartered surveyors said house prices would flatline next year because the market is being dampened by factors including stamp duty, political uncertainty around Brexit, and a lack of housing stock, which leaves potential buyers with a very limited choice.
“Following a pretty lacklustre finish to 2017, the indications are that momentum across the housing market will be lacking as 2018 gets underway,” said RICS economist Tarrant Parsons.
“With several of the forces currently weighing on activity set to persist over the near term, it’s difficult to envisage a material step-up in impetus during the next twelve months.
“A real lack of stock coming onto the market remains one of the biggest challenges, while affordability constraints are increasingly curbing demand in some parts. Given these dynamics, price growth may fade to produce a virtually flat outturn for 2018.”
UK house price growth has continued to slow throughout 2017. Mortgage lender Halifax said prices grew 3.9% in the year to the end of November, down sharply from 4.5% in October, although monthly price data can be unreliable.
The prediction from RICS, which is based on a poll of chartered surveyors, is below other mainstream forecasts.
Estate agents Savills expects prices to grow by 2% next year, while accountants PwC forecast 3.9% growth over the year.