British households’ expectations for house price growth has slipped to the lowest level since 2013 against a backdrop of heightened political and economic uncertainty in the run up to next week’s Brexit vote.
While house prices are still expected to rise over the next 12 months, real estate consultancy Knight Frank’s future house price sentiment index dropped to its lowest point since August 2013.
“The decline in the future household sentiment index to a near three-year low coincides with growing uncertainty over the result of next week’s EU referendum as the debates over the UK’s future step up a gear,” said Gráinne Gilmore, head of UK residential research at Knight Frank.
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Mansion Global previously reported that wealthy foreign buyers are positioning themselves to scoop up bargains in London’s luxury housing market if Britain votes to leave the European Union later this month.
Some brokers predict that dollar-backed buyers could flood back into the market if sterling slides in the event that Britons vote in favor of a so-called Brexit, making properties much cheaper for them.
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A report from thinktank Economist Intelligence Unit predicted earlier this week that the uncertainty caused by a “leave” vote would upset consumer and market sentiment, causing a 14-15% devaluation of the pound against the U.S. dollar.