RICS surveyors say Brexit and general election has dampened housing market

UK house prices fall at fastest rate in 7 months: RICS

UK housing market put on hold by the election

The Royal Institute of Chartered Surveyors (RICS) said that while buyers were still active, fewer sales had been taking place - partly because of a fall in properties coming onto the market.

Hotels and restaurants in East of England "at heightened risk of insolvency" New buyer enquiries slipped in the region once again, with 9% more respondents recording a decline - a pattern which mirrored other parts of the UK.

However, despite the current subdued nature of the market, surveyors in Wales are more optimistic about the outlook once the election results are known.

There is change expected post-Election result, with sales expectations over the next three months looking more stable with a net balance of 11%.

Indeed, with supply continuing to be constrained in the market, prices were reported to have risen over the past three months despite the subdued market activity.

And Welsh surveyors are the UK's most optimistic about prices over the next 12-months.

"However, the indications from respondents are that the New Year will see activity increase and prices continue to edge upwards".

A solid increase in transactions is expected in virtually all parts of the United Kingdom, it said.

"The market seems to have gone into something of a hibernation for the winter with lower levels of sales and instructions".

Residential property spokesperson for RICS in the north, Samuel Dickey, said: "It is not surprising that activity is easing back as we approach the end of the year and price momentum is slowing, not least with the uncertainty that comes before a general election".

But the market expected to pick up over the next 12 months once the General Election is out of the way.

There was a decline in rental stock coming to market, a consistent theme over the past three years, against steady tenant demand. Expectations for rents in the three months are for a modest increase.

It said the average price of a home rose 1 per cent to £234,625 last month - the biggest rise since February.

The sales expectations balance was in positive territory, at +24% pointing to an expectation that sales activity will improve.

House prices are also predicted to pick up, with an overall net balance of a third (33%) of property professionals expecting values to increase rather than decrease over the next 12 months.

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