The number of properties sold in the UK’s major cities dipped by 2.2% over the past 12 months as the market braces for Brexit, new figures show.
According to Hometrack’s UK Cities House Price index, transactions were down by as much as 20% in Cambridge and 7% in London.
House price inflation has increased to 10.2%, up from 8.6% a year ago, largely due to constricted supply.
Richard Donnell, insight director at Hometrack, said: “High housing and moving costs are limiting access to the market for a growing number of households which, in our view, will result in lower turnover and slower house price growth.”
The current average price for a property in the UK is £231,700 ranging from £109,000 in Glasgow to £455,000 across London.
Hometrack said there are signs that the annual rate of growth in cities in southern England is starting to plateau as the level of housing sales slows and affordability pressures on would-be buyers increase.
Market activity is also likely to be affected by uncertainty around the forthcoming EU referendum and the increase stamp duty charges.
“The EU referendum adds further complexity to an already complex outlook. Our analysis shows that the Scottish referendum, and the 18 month campaign that preceded it, resulted in 10% fewer transactions and slower house price growth over the period relative to England,” said Donnell.
“The shorter run up to the EU vote will help but the true impact will depend on how quickly the campaigning focuses on the economic ramifications for UK households and the knock on effect for housing related decisions as Scotland proved. A vote to remain in the EU should see a return to business as usual whereas a vote to leave will create additional uncertainty,” he added.
