Property surveyors predict largest price fall in UK homes since 2011 as Brexit looms – report

PETALING JAYA (Feb 15): Property surveyors are predicting that UK's housing market will experience the most pervasive decline in prices since February 2011 in the next three months as the Brexit approaches without an acceptable transition deal in sight, reports Reuters.

The Royal Institution of Chartered Surveyors (RICS) chief economist Simon Rubinsohn said it was crucial that the Brexit negotiations come to a resolution in order to lure buyers back into the market.

The UK's departure from the European Union (EU) is scheduled to happen on March 29, but Prime Minister Theresa May has yet to come up with a new deal with the bloc that would appease her fractured Conservative Party and Parliament.

This means the country may well leave the EU without a proper transition agreement in place.

Already, RICS' monthly house price balance fell to -22 in January from -19 in December, the lowest since July 2012.

Meanwhile, the number of properties put up for sale has also declined the most since July 2016 after the UK voted to exit the EU.

Prices fell the most in London and southeast England, home to the most expensive properties.

Demand in these locations were already hammered by higher taxes on investment properties, properties priced over £1 million and foreign property owners.

However, values rose in Scotland, Wales and Northern Ireland.

Overall, values grew by 2.5% this year – the lowest amount since July 2013 – according to official data released yesterday.

The institution said surveyors expect price growth to largely stagnate, growing by 11% over the next five years.