House sales are to continue stagnating next year amid Brexit uncertainty and lack of supply, according to the Royal Institution of Chartered Surveyors (RICS).
In its forecast for the year, the trade body said the UK housing market is unlikely to see much change in 2019, with sales volumes to weaken by around five per cent and house price growth to reach a standstill.
The report said 2019 would be the third straight year of decline, with annual completed transactions staying significantly below the 1.7m high in 2006.
Tarrant Parsons, RICS economist, said Brexit uncertainty had caused “greater hesitancy”.
That said, the current political environment is far from the only obstacle hindering activity with a shortage of stock continuing to present buyers with limited choice, while stretched affordability is pricing many people out” he said.
“For the year ahead, this mixture of headwinds is unlikely to dissipate, meaning sales volumes may edge a little lower.
“On the back of this, house price growth at a UK level seems set to lose further momentum, although the lack of supply and a still solid labour market backdrop will likely prevent negative trends.”
Source: City A.M.