A drop in house prices in the short term has been predicted by members of the Royal Institution of Chartered Surveyors (RICS) who work in estate agents, with the fall expected to last for the next three months.
The surveyors who expected prices to fall outnumbered those expecting a rise in prices by a majority of 10%.
The last time house prices fell on an annual basis was in late 2009.
The RICS attributed the likely fall to a combination of uncertainty surrounding the EU referendum and a cooling of the market since the changes to stamp duty which went through in April.
Simon Rubinsohn, Chief Economist at RICS, commented: “What we are looking at is a short term drop caused by the uncertainty resulting from the forthcoming EU referendum, coupled by a slow-down following the rush to get into the market ahead of the tax change on the purchase of investment properties.”
London and East Anglia are said to be the most affected, followed by South West England and Yorkshire and Humber.
House prices aren’t predicted to fall in all areas however, with Scotland, Wales, Northern Ireland, the Midlands and the North all expected to see a continued rise.
The number of properties coming onto the market is also at a record low, contributing to continued demand and the short term nature of the expected price fall in the areas mentioned.
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Source: Trust a Trader