House price growth to slow until end of the year

Ryan Bembridge

July 11, 2016

row of houses

House price growth will slow until the end of the year after the Brexit vote, Capital Economics has predicted.

Annual house price inflation slowed from 9.2% in May to 8.4% in June according to Halifax’s house price index, through Nationwide calculated it rising from 4.7% to 5.1% between the two months.

Economists Roger Bootle and Ed Stansfield, editors of Capital Economics’ UK Housing Market Monthly report, wrote: “Data ahead of the EU referendum point to a housing market that is still recovering from the distortive effects of the stamp duty surcharge.

City house price inflation slows

“With economic and political uncertainty set to persist for some time, transactions are set to be weak, while we think that the current trend of slowing house price growth will continue to the end of the year.”