Largest Agents predicts house prices will fall

House price growth is expected to slow everywhere across the UK this year and go into reverse next.

The forecast comes from Countrywide which says house prices will fall by 1% next year after growth slows to 2.5% this year.

The UK’s largest agent is predicting that house prices in London will slow to 3.5% growth by the end of this year and fall 1.25% in 2017.

In prime central London, prices are forecast to fall by 6% this year and then to stay static next year.

Countrywide says “the vote to leave the EU has unsettled the UK economy”.

As a result, it expects house prices to be affected, although it also says that higher Stamp Duty continues to take its toll on the top end of the market.

The firm believes that house prices will recover in 2017 to levels similar to the first quarter of this year.

Countrywide said that the continuing lack of supply and very low borrowing rates would remain a supportive factor of house prices.

Separately, Knight Frank/Markit’s house price sentiment index has shown that households across the UK believe the value of their home has risen this month – and will rise over the next 12 months.

The proportion of households believing the value of their house has risen gives a reading of 51.4.

Any figure over 50 indicates belief in house price increases, and the figure of 51.4 contrasts with that of 48.3 in July. However, the average figure for the first six months of the year was 59.9

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Written by: Houseladder