UK house price forecasts heavily downgraded as Brexit freezes housing market

UK house price forecasts heavily downgraded as Brexit freezes housing market

Alongside Brexit uncertainty and low housing stock, with the average number of properties on estate agents’ books at a record low of 41.7, unrealistic sellers are also holding up the market, Rics said.

Its chief economist Simon Rubinsohn said it was clear from professionals working in the market that “this environment requires a greater degree of realism from those looking to move”.

He added: “A reluctance from some vendors to acknowledge the shift in the balance of power in the market will compound the difficulty in executing transactions.”

Peter Buckingham, of estate agent Andrew Granger & Co, said “sensibly priced” properties were selling well, while agent John Frost, of The Frost Partnership, said there are “still too many houses with unrealistic prices and the general mood from buyers is to offer a lot less than guide prices”.

The UK housing market has slowed since the EU referendum in 2016, and Rics said uncertainty was set to continue for the coming three months, although the twelve month sales expectations suggest a “slightly more positive outlook”.

The trade body predicts that national house price growth will come to a standstill this year, but a supply shortage “will negate outright falls”. 

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