Britain’s housing market will get off to slow start in 2017

Lack of homes for sale means housing market will get off to slow start in 2017, according to surveyors.

According to the Royal Institute of Chartered Surveyors, the state of the housing market will continue into 2017, with a lack of new homes available and higher property taxes responsible for the slow start.

RICS say property transactions have slowed since the Spring, and even if they do pick up in the New Year, any increase would be modest.

Although strong demand for properties is driving price growth, this is expected to ease, with RICS Chief Economist saying the lack of new homes and higher taxes pose a threat to consumer spending levels.

The survey follows recent predictions from mortgage lender, the Halifax, who say house price growth may slow in the coming months.

The Halifax say that property price rises had accelerated in November, a picture mirrored by RICS which said a net balance of 30% of surveyors reported house prices rising rather than falling in November. This was the strongest figure seen since April.

In the RICS survey, there was also an increase in inquiries from potential new buyers, but with relatively few homes being put on the market, and many being bought quickly, this has meant little choice for buyers.

Many surveyors pointed to stamp duty as being the main drag on the market, along with a stamp duty surcharge for buy-to-let investors, which was introduced in April.

Simon Rubinsohn, Chief Economist at RICS, said: “The combination of macro uncertainty, the on-going supply shortfall, with stock levels around historic lows, and the myriad of tax changes impacting on buyers suggest that any pick-up in activity will be relatively modest.

“This is significant not just for the housing market itself but also for the wider economy given how much of consumer spending is tied in with home purchases.”

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