House prices are on course to fall by 1.7% over Q1, according to the reallymoving House Price Forecast.
The forecast has predicted average house prices in England and Wales to increase by 0.1% in January, followed by a decline of 1.1% in February and 0.7% in March.
However annual growth, which has been in positive territory since July 2019, is set to remain so throughout the first three months of the year.
Reallymoving has predicted a 1.4% annual growth forecast for January, followed by 3.7% in February and 3.1% in March.
Rob Houghton, chief executive of reallymoving, said: “A forecast of continued positive annual growth confirms that the market is performing consistently more strongly than 12 months ago and consumer confidence in the housing sector is growing.
“But despite the UK’s imminent departure from the EU later this month there are still many questions about our future relationship which will deter buyers who don’t need to move urgently, curbing the potential for strong price growth during 2020.
“Those who are hoping for a ‘Boris bounce’ in house prices in March as a result of sales agreed straight after the Conservatives’ decisive election victory in December will have to wait a little longer.
“It’s likely that Christmas put a dampener on any immediate post-election flurry of activity from buyers, but we may see the delayed impact of this activity in January reflected in house price growth later in the spring.”
The forecast suggests that it is likely that a number of buyers will remain reluctant to commit until there is greater certainty around the UK’s future relationship with the EU and the possible implications for jobs, the housing market and the wider economy.
Minor price falls are typical at the start of the year and despite the wider political turmoil of the past few months, the housing market is continuing to follow its usual seasonal patterns with prices remaining largely stable.