Image: Geoff RoyleThe inflation of house prices in the UK will continue to slowdown over the next few months, the Royal Institute of Chartered Accountants (Rics) has said.
The organisation said factors like Stamp Duty increases for landlords, which came into force from 1 April, the EU referendum and local elections in Scotland, Northern Ireland and Wales would result in house prices rising slower than they have been.
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."
He added: "Likewise, the EU referendum, is likely to be an influencer in terms of the damper outlook for London in particular."
According to Rics latest survey, most surveyors in London expect prices to actually fall in the next three months, not just see growth slow down.
However, that sits in stark contrast with the rest of the country, where those expecting a rise outweighed those expecting prices to go down by 38%. Surveyors in the North West and Northern Ireland are far more likely to expect significant price rises during that time.
Looking ahead to the rest of the year, Rics said prices in England and Wales are likely to rise by 4%, regardless of the result of the EU referendum.
"The imbalance between demand and supply will still exert a strong influence on the market, with house prices expected to rise by close to 25 per cent over the next five years," said Mr Rubinsohn.
Earlier this week, the Office for National Statistics said annual house price inflation had slowed from 7.9% in January to 7.6% in February.
