House price growth to slow over coming months

UK house price inflation is set to slow within the next few months, a Royal Institution of Chartered Surveyors (RICS) survey has suggested.

The survey revealed that factors such as the recent changes to Stamp Duty and the upcoming EU referendum, alongside local elections in Wales, Scotland and Northern Ireland could potentially lead to a slowdown in the housing market.

Simon Rubinsohn, RICS Chief Economist, said: ‘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’.

The survey suggested that surveyors in London expect house prices to experience a fall over the next three months, instead of just slowing down.

However, survey respondents in North West England and Northern Ireland were more optimistic: many expect prices to rise over spring and early summer.

In the longer term, the RICS predicts that house prices will rise by more than 4% a year in England and Wales.