View more on these topics

Countrywide: House prices to fall 1% in 2017

Real-Estate-Agent-House-For-Sale-London-700.jpg

UK house prices will fall 1 per cent next year due to post-Brexit economic fallout, according to new research from Countrywide.

The firm says house price growth will weaken in the second half of 2016 in all regions except Scotland.

House prices will only rise 2 per cent this year, compared to growth of 6.5 per cent in 2015 and 8.5 per cent in 2014.

Countrywide predicts that the housing market will be hit by falling consumer confidence, reduced household spending and increasing unemployment levels.

High stamp duty will also play a part, according to Countrywide.

A Countrywide statement says: “The vote to leave the European Union has unsettled the UK economy as uncertainty surrounding the arrangements for decoupling from the EU and the effect this will have on trade and future economic growth.”

However, the firm says house prices will rise towards the end of 2017 at a rate of 2 per cent, and that this will continue into 2018.

Prime property prices in central London will fall 6 per cent this year, the firm predicts.

Greater London prices will fall 1.25 per cent and then rise 2 per cent in 2017.

Countrywide chief economist Fionnuala Earley says: “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.

“However, the weaker prospects for confidence, household incomes and the labour market mean that we do expect some modest falls in house prices.”

Recommended

1

Opinion: Theresa May’s housing to-do list

Theresa May, the new Prime Minister, has inherited a daunting to-do list. While tackling the Brexit fallout is inevitably at the top of that list, it is encouraging to see that the housing crisis is also getting significant attention from the new PM. Mrs May was absolutely right to say that “we need to do […]

House-Home-Ad-In-Paper-700.jpg

House prices rose 8.7% in year to June

The average UK house price rose by 8.7 per cent to £213,927 in the year to June, according to the latest Land Registry House Price Index. House prices rose 1 per cent month-on-month compared to May, where the average house cost £211,864. In England the average house price rose 9.3 per cent in the year […]

Home-House-Money-Property-700x450.jpg

House price rises slowing post-Brexit: Halifax

House prices in July fell 1 per cent on June, according to the latest Halifax house price index. However, the index shows prices in July were up 8.4 per cent on the same period last year. Q2 house prices were also 1.6 per cent higher than in Q1. The average house price is £214,678, according […]

Health Shield logo - thumbnail

Health Shield launches new and improved health and wellbeing benefits

As part of its commitment to help even more companies improve employee wellness and productivity, award-winning health cash plan and wellbeing provider Health Shield has announced a raft of new and improved health benefits. From early diagnostics, detection and screening services to rehabilitation and the extension of home care support to parents, Health Shield’s range […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • SOX 22nd August 2016 at 10:12 am

    What utter tosh! What this report is basically saying then is than house prices are expected to increase by 1% next year! How can anyone possibly predict this………

  • John Lacy 22nd August 2016 at 9:43 am

    I wish that Countrywide et al would shut up and let the market do what it’s going to do without trying to second-guess what is going to happen (and perhaps try to influence it).
    I’ve seen a lot smarter set ups than Countrywide get it badly wrong over the lat 40 odd years and can’t believe that sensible publications as Mortgage Strategy give such trash an airing.