House prices in England and Wales are set to fall over the next three months according to a price index produced by a moving company.
The forecast - made before the General Election result was known - is based on data from sales agreed in September, October and November which are on course to complete over the next three months.
The index - by reallymoving - says average prices in England and Wales are set to decline by 1.1 per cent this month, will record a ‘no change’ in January, and will then fall again by 1.1 per cent in February.
The firm says price falls in February are typical and despite the wider political context of Brexit uncertainty and a new government, the housing market is continuing to follow its usual seasonal pattern.
Year on year, house prices continue to perform more strongly, albeit against a relatively poor performance last autumn when prices fell by four per cent over the later part of 2018.
London is expected to see prices fall by three over the next three months. Reallymoving says this is the market most affected by Brexit uncertainty.
First time buyers account for some 54 per cent of all transactions, but overall transaction volumes are down 12 to 15 per cent, the index shows.
“Buyers have driven hard bargains on deals agreed during the autumn, as would be expected in the run up to Christmas and considering the wider political circumstances. But the market has shown resilience and stability throughout 2019 and as fears of a crash have faded, buyers have adjusted to the ongoing uncertainty and proven themselves keen to get deals done” explains Rob Houghton, chief executive of reallymoving.