When the UK voted to leave the European Union last June, it was predicted that it would affect a number of sectors, with British property being one of the hardest hit. Experts forecast price drops, buyer numbers plummeting, and rising numbers of tenants.
However, the doom and gloom that was predicted never quite materialised, with the market showing that it has a resilience and underlying strength that can carry it through. In spite of this, experts say the market has suffered slightly, with growth far slower this year than it has been in the past.
According to the economic outlook report from PwC, the price of properties in the UK has still been rising so far in 2017. And it said that this is likely to continue for the rest of the year, although it will do so at a slower rate than in recent years. The forecast says that the average property could sell for £220,000 as of the end of this year, which would be £8,000 higher than in 2016.
However, it's the rate at which house prices are growing that shows where the Brexit effect has come into play. In 2016, the average house rose in value by as much as seven per cent year on year. In 2017, this is expected to be markedly lower, with increases of just 3.7 per cent on average.
The good news moving forward is that after the Brexit uncertainty comes to an end, the market should return to stronger growth. PwC predicts that in the next eight years, we should see the average price of a home hit £300,000 nationwide.
"There are still downside risks relating to Brexit, but there are also upside possibilities if negotiations go smoothly and the recent eurozone economic recovery continues. We expect the UK to suffer a moderate slowdown, not a recession, but businesses should be monitoring this and making contingency plans," added John Hawksworth, chief economist at PwC.