The Brexit vote will lead to two years of very low house price growth in Great Britain, new research has revealed.
Residential researchers at Savills estate agency have predicted that economic uncertainty over the vote to leave the European Union has triggered two years of very low house price growth, which will be static in 2017 and go up by just 2% in 2018.
Over the five years to 2021, it predicts total house price growth of 13%, with the East of England the top performer at 19%.
Savills predicts that problems raising a deposit will lead to a 15% drop in first-time buyers, from 325,000 this year to 275,000 in 2018. It adds that tougher mortgage lending criteria will also deter homeowners with mortgages from trading up.
With first-time buyers and second steppers struggling to get on or move up the housing ladder, Savills predicts that rental growth will be stronger than house price growth over the next five years, with average rents forecast to go up by 19% in the UK and 24.5% in London.
Click the map below (which shows house price predictions for the UK, excluding Northern Ireland) to enlarge:
Source: Savills, 4 November 2016