NAEA – Brexit uncertainty to drive house price falls in 2019
NAEA Propertymark members predict that house prices will fall in 2019, driven by Brexit uncertainty.
43% of estate agents expect house prices to fall next year, as 39% think supply will increase and 35% think demand will drop.
This is driven by uncertainty over Brexit, with almost half (46%) of agents agreeing that a no-deal Brexit will have a negative impact on the housing market.
As homeowners put off plans to move in light of Brexit, almost two thirds (62%) of estate agents think the trend of renovating rather than moving will continue in the New Year.
Elsewhere, 78% think the number of landlords operating in the private rented sector will decline next year, as they are driven out by rising costs.
In line with this, 67% expect landlords’ taxes to rise again.
Mark Hayward, chief executive of NAEA Propertymark, said: “As we look ahead to 2019, there’s a fog of uncertainty. Brexit is undoubtedly fuelling a sense of apprehension in the housing market, which in turn affects sentiment. With details of the final deal still unknown, both buyers and sellers will continue to hold off on making any decisions. However, this slowdown presents a window of opportunity for first-time buyers who will find more affordable properties, granting them greater bargaining power.
“We usually see demand spike in the first few months of the year, but the landscape will probably be very different in 2019 as buyers sit on the fence and adopt a ‘wait and see’ strategy until the Brexit deal is complete.”
Source: Financial Reporter