The housing market is expected to slowdown in the run-up to the EU referendum after peaking earlier this year, according to surveyors.
The Royal Institute of Chartered Surveyors said that prices were set to slow due to stamp duty changes, a weaker pound, Brexit and Scottish and Welsh elections in May.
However, its members believe that the longer-term outlook is a lot brighter with prices still expected to rise by more than 4% each year for the next five years across England and Wales.
RICS said house prices rose once again in March and have now increased continuously for an entire three-year period.
However, London is a “notable exception” with prices falling in some areas of the capital.
In recent months, there has been a surge in buy-to-let property transactions as investors tried to complete sales before the 1 April stamp duty increase. This has now ended, taking some heat out of the market.
Simon Rubinsohn, RICS Chief Economist, said: “As expected, the buy-to-let rush has now run its course and, as a natural result, the market is starting to slow. But there are other significant factors that are currently weakening short-term confidence in the UK property market.
“Elections inevitably bring with them periods of uncertainty in the market, and our figures would suggest that next May’s devolved elections are no exception. Likewise, the EU referendum, is likely to be an influencer in terms of the damper outlook for London in particular.
“However, all indications suggest that whatever the outcome of the forthcoming elections and referendum, in the long-term, the imbalance between demand and supply will still exert a strong influence on the market, with house prices expected to rise by close to 25% over the next five years.”
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