House prices in the UK are predicted to rise by 3 per cent next year as the number of transactions stabilises and the shortfall in supply hits home.
While the cost of property is predicted to rise, the latest RICS report into the market estimates that transactions will fall from 2016 levels, coming in at between 1.15m and 1.2m, marginally below the 1.25m transactions which are on course for this year.
The report follows data from HMRC that found the number of property transactions fell 7.3 per cent in the year to November.
The RICS report also predicts that rents will increase by 2 to 3 per cent across the UK in 2017.
North London estate agent and a former RICS residential chairman Jeremy Leaf says: “Though a little historic, the HMRC numbers confirm what we’re finding ‘on the ground’. In other words, the market has continued to show considerable resilience post-Brexit as buyers prepared to negotiate hard but fair are getting transactions done.
“We have always regarded the number and pace of transactions to be much more relevant when assessing market strength than the ups and downs of house prices.
“Christmas came early for many areas with markets quieter earlier than usual. It remains to be seen whether the usual early new year optimism can be translated into sales.”