BREXIT: Prolonged uncertainty damaging UK housing market
The Royal Institution of Chartered Surveyors (RICS) warned that prolonged Brexit uncertainty will damage the UK housing market.
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.
In its monthly residential market survey, which gathers the views of more than 300 chartered surveyors, RICS found more than three-quarters of respondents believed Brexit uncertainty was holding back the market, as buyers and sellers awaited the outcome of negotiations.
The trade body said there had been a continued decline in activity across the housing market, with new buyer enquiries, agreed sales and instructions all falling for the sixth consecutive month.
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”.
RICS predicts that national house price growth will come to a standstill this year, but a supply shortage will negate outright falls.