House sales are predicted to fall in the coming months following the UK’s decision to leave the EU, with surveyors more pessimistic than at any time since the 1990s.
According to the Royal Institute of Chartered Surveyors, uncertainty fuelled by the EU referendum has resulted in house sales plummeting, with enquiries from buyers at their lowest since the financial crisis in 2008.
Over the next 12 months the dip in prices is only expected to persist in London and East Anglia.
RICS said 36% more chartered surveyors nationally reported a fall in interest with the South the hardest hit.
The 3% stamp duty increase on second homes in April has also had an effect on sentiment.
The supply of properties coming onto the market for sale across the UK in June also fell for the third consecutive month, with the exception of Northern Ireland.
Surveyors are also more negative than at any point since 1998, with 26% expecting a further drop in sales across the UK over the next three months.
In London, nearly half of all surveyors reported a fall in prices, largely concentrated in the central zones.
Simon Rubinsohn, RICS chief economist, said: “Big events such as elections typically do unsettle markets so it is no surprise that the EU referendum has been associated with a downturn in activity.
“However, even without the build up to the vote and subsequent decision in favour of Brexit, it is likely that the housing numbers would have slowed during the second quarter of the year, following the rush in many parts of the country from buy to let investors to secure purchases ahead of the tax changes.”
Rubinsohn said the data suggested that the dip in activity will persist over the coming months but the critical influence would be how the economy performs post-Brexit.
“Respondents to the survey are understandably cautious but with interest rates heading lower and sterling significantly so, it remains to be seen whether the concerns about a possible stalling in both corporate investment and recruitment are justified,” Rubinsohn said.
