UK property market forecast to take hit on political uncertainty

The United Kingdom has been dealt a couple of ‘shocks’ in the last year – Brexit and the Conservative’s lost majority in Parliament.

The only thing that these results definitively mean for the country is uncertainty. Whilst every voter and British resident works to navigate these unclear times there is an air of nervousness about how things will pan out. This is becoming clear through the commonly used temperature gauge of any Western economy – the housing market.

Latest data suggests that both Brexit and the UK election have negatively impacted the already overheated property market. With little foresight as to how the economy and government will move forward, the housing industry is feeling nervous.

“The general election is again commonly cited as a factor hindering activity, causing some hesitancy from both buyers and vendors.” stated RICS upon release of their latest survey. Prices have also been affected by Brexit. Before Britain voted to leave the EU, the UK had seen year-on-year price rises of almost 10 percent, now house prices are either stalling or falling.

Housing market tense and uncertain

A survey carried out by Royal Institution of Chartered Surveyors (RICS) found brewing problems in the market were largely down to concerns over both the outcomes of the snap election and Brexit.

The professional body reported British house prices had risen at their slowest rate since August 2016, in May. Volumes were also down as enquiries from new buyers, new instructions from those wanting to sell and agreed sales had all declined during May, with the number of homes being put up for sale falling the most since just after the 2016 Brexit result.