economic uncertainty driven by Britain’s departure from the European Union will put a dent in Yorkshire house prices next year, new forecasts suggest.
House prices will fall an average of 0.5 per cent across Yorkshire in 2017 according to data from the Countryside estate agency network.
However, Yorkshire will fare better than many other parts of the country and can also expect to see a housing market recovery in 2018.
According to Countrywide, the principal cause of the wobble on house prices is not the prospect of Brexit itself but the uncertainty over the economy the referendum vote has triggered.
Fionnuala Earley, Countrywide’s chief economist, said: “Forecasts in the current environment are trickier than ever as the vote to leave the EU has thrown up many risks.
“Our central view is that the economy will avoid a hard landing, which is good news for housing markets.
“However, the weaker prospects for confidence, household incomes and the labour market mean that we do expect some modest falls in house prices before they return to positive growth towards the end of 2017 and into 2018.
“Not all of the corrections are due to the vote to leave the EU. Stamp duty and weaker house price growth expectations, particularly in London’s prime markets, have a part to play.
“There are supports to prices on the supply side from the continuing mismatch of supply.
“On the demand side, ultra-low interest rates and the significant discounts available to overseas buyers resulting from the fall in Sterling will help to support prices too.”
According to today’s forecasts, house price growth in Yorkshire is expected to slow to one per cent this year compared to the 4.5 per cent increase seen last year.
The slowdown is forecast to turn into a price fall of 0.5 per cent next year before rallying back into growth of two per cent in 2018.
Nationally, house prices are expected to dip by a full percentage point in 2017 before growing by two percentage points the following year.