House prices to rise 4.4% despite Brexit negotiations: Cebr

The Centre says a mix of factors is currently at play in the UK housing market, including the rise in stamp duty on second homes and the changes in buy-to-let mortgage tax relief, which have "taken steam out of the market".

Cebr predicts that the average house price will rise to £220,000 in 2017 though at a lower growth rate of 4.4%.

This is below the rate of 7.4% seen in 2016 and the slowest rate since 2013.

Cebr then expects house price growth to remain subdued at 4.1% in 2018 before picking up again from 2019 onwards.

Kay Daniel Neufeld, Cebr economist and main author of the report, said: “Already towards the end of 2016 indicators pointed to a stabilisation in the housing market, a trend that has continued in the first months of 2017.

“Transaction numbers are slowly recovering from the introduction of a stamp duty surcharge on second homes in April 2016, which has led to considerable distortions in the market.

“Mortgage approvals are nearing post-crisis heights, boosted by low interest rates and favourable borrowing conditions.”

Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “Today’s figures from Cebr should actually be welcome news for the housing market, showing that house prices are finally starting to rise closer to inflation. Despite a reduction in the momentum of house price growth, currently predicted at 4.4%, the underlying fact remains that our housing market is hindered by an imbalance between supply and demand."