House prices will trail inflation for years

UK house prices will not match low inflation until 2021, according to new research by Reuters. The continuing Brexit malaise will cause prices to fall 1.5% in London this year, Reuters said. Elsewhere in the UK, house prices are predicted to rise 1% this year, 1.5 % next year and 2.3% in 2021, according to the poll of 27 property market analysts. Meanwhile, inflation is forecast to be 1.9%, 1.9% and 2% respectively. “Even if a Brexit deal is implemented soon, we expect to see only a small improvement in housing market transactions and house price growth over the next two years,” said Hansen Lu at Capital Economics.

City AM (20/11/2019)  Daily Mail (20/11/2019)