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House Prices To Rise By 'Average 3.3% A Year' - Surveyors



The market has recovered from a post-Brexit vote shock though price growth projections have been lowered by surveyors.

House for sale signs against cloudy sky
Image Caption: A shortage of new homes is forecast to prop up growth in the longer term

UK property prices will rise by an average 3.3% annually for the next five years, according to a report which says confidence is returning following the EU vote.

The monthly study of market conditions by the Royal Institution of Chartered Surveyors (Rics) found that while price growth expectations had been tempered by the fall-out from the referendum, a shortage of new homes would prop up growth in the longer term.

It had predicted growth of 4% per year before the UK voted to ditch its EU membership.

However, the survey of surveyors agreed with other market reports that activity returned in August after five months of decline.

For the sixth month in a row, more surveyors in London reported prices falling rather than rising but in most other parts of the UK prices showed signs of increasing, Rics said.

It expected London prices to remain largely static over the next 12 months. The finding ties in with warnings from housebuilders this week that the London market has been damaged by rising buyer costs.

Surveyors were more confident about rising house prices for the rest of the UK but said stamp duty changes aimed at curbing buy-to-let sales had dampened demand.

Rics chief economist, Simon Rubinsohn, said: "There are clear signs that the housing market is settling down after the initial surprise of the outcome to the EU referendum.

"Buyer enquiries did dip again in August but only modestly, and more significantly, sales expectations are beginning to edge upwards once again."

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