Britain’s Housing Market Still Under Pressure Due to Brexit Uncertainties: RICS

According to a recent survey by RICS, Britain’s housing market is going to be under pressure because of Brexit uncertainties in the coming months. Sales volume expectations for the next three months fell to -23% in August from -4% in July and short-term expectations for house prices fell to -24% in August from -13% in the previous month.

On the positive side, the headline RICS Price net balance for August climbed higher to -4% from -9% in July, even though economists expected a decline to -11%. The real estate market could pick up within a year, with respondents expecting house prices to rise by 12% in the next 12 months.

The housing market in Britain has continued to suffer since the Brexit referendum in 2016 as buyers remain hesitant to make important purchase decisions in the wake of rising uncertainty. Meanwhile, the demand for renting houses remains strong in the market, with net balance rising for an eighth consecutive month in August to +23%.