UK property prices to flatline in 2017: Savills

Brexit to take a toll on price growth, consumer sentiment
November 07, 2016 01:30PM

Georgian houses in London

Georgian houses in London (credit: Getty Images)

From the New York website: Britain’s property prices could flatline in 2017 thanks to uncertainty caused by Brexit and weaker consumer confidence, according to an industry forecast cited by the Guardian.

International brokerage Savills projected zero growth in home prices in Britain next year, followed by a paltry 2 percent uptick in 2018, the report shows. In London, prices are expected to remain flat.

Savill’s UK head of residential research, Lucian Cook, attributed the market’s sluggishness in large part to the EU referendum, noting that he anticipated the volume of U.K. sales to fall by 16 percent next year.

“The effect of Brexit is complicating a natural shift towards the later stages of the housing market cycle, when the strongest growth is seen beyond London and the south-east,” he said. “What is clear is that the housing market does not like political and economic uncertainty and this points to a lower growth, lower transaction market across the board.”

Savills predicted the average price of a UK home will increase by £27,900, or $34,926, by December 2021, to £241,900, or $302,822. [Guardian]Katherine Clarke