According to survey by the Royal Institution of Chartered Surveyors (RICS) the UK housing market is cooling
In a survey of RICS members confidence in the UK property market is cooling due to the impacts of Brexit, stamp duty changes, a weaker pound, and the elections in May. It was found house price growth is slowing but still positive outlook for house prices in the next 12 months.
Simon Rubinsohn, chief economist at Rics, said: “As expected, the buy-to-let rush has now run its course, and as a natural result, the market is starting to slow. But there are other significant factors that are currently weakening short-term confidence in the UK property market.
“Elections inevitably bring with them periods of uncertainty in the market, and our figures would suggest that next May’s devolved elections are no exception. Likewise, the EU referendum is likely to be an influencer in terms of the damper outlook for London in particular.
“However, all indications suggest that whatever the outcome of the forthcoming elections and referendum, in the long term, the imbalance between demand and supply will still exert a strong influence on the market, with house prices expected to rise by close to 25pc over the next five years.”
Respondents of the Rics survey said a decline in house prices in London would continue: 38pc more respondents expected to see prices fall than rise over the next three months.
But the survey suggested that prices would still rise by more than 4pc each year for the next five years across England and Wales. The number of sales instructions was largely flat in March, after three monthly increases.