PWC forecasts UK housing market to slow in next years
House prices were forecast to slow further in the short run. PwC said house price inflation will slow to 3.7% in 2017 from 7% in 2016.
The average residential property in the UK could be worth approximately GBP220,000 in 2017, which was GBP8,000 higher than in 2016, PwC said in its UK Economic Outlook.
There were wide variations in house price trends across the country over the past decade.
PwC observed that in around a quarter of UK local authorities, average house prices are still lower than their pre-crisis peak levels in 2007, whereas in London they are more than 60% higher.
The economic growth was projected to slow to 1.5% in 2017 and 1.4% in 2018, due to slower consumer spending growth and ongoing uncertainty.
The agency expects consumer spending growth to continue to moderate in 2017-18 as inflation eats into real spending power and wage growth remains subdued.
On the other hand, the weak pound should also have some offsetting benefits for net exports as will a stronger global economy, PwC said.
"We expect the UK to suffer a moderate slowdown, not a recession, but businesses should be monitoring this and making contingency plans," John Hawksworth, chief economist at PwC, said. ■