Despite uncertainty around Britain's decision to leave the European Union, residential property prices in Britain will increase by 2% next year, a Reuters poll of analysts has revealed.
Although the expected rate of capital growth could be lower than the rate of inflation in 2017, it does suggest that the market will remain broadly stable, which is not necessarily a bad thing, given the wider political and economic uncertainties.
Looking further ahead to 2018, views among the poll of 25 economists, estate agents and brokers are that prices will increase at a slightly faster pace of 2.7%.
“To say that ‘no market likes uncertainty’ is a cliché but it is, nonetheless, an accurate one - and Brexit has dramatically raised both macro and micro economic uncertainty and this will continue for some time,” said Tony Williams at property consultancy Building Value.
Although UK house prices are expected to remain broadly stable, values in London are forecast to fall by around 0.5% in 2017, before rising once more - by around 2% - in 2018.
“It is likely that any downside for house prices will be limited markedly by a shortage of houses for sale,” said Howard Archer at IHS Markit.