Slowdown in price growth of UK property in 2017

London

HOUSE prices in the United Kingdom may only eke out a modest gain next year as economic growth weakens and a pickup in inflation squeezes consumers, according to Halifax.

The mortgage lender sees housing demand easing in 2017, partly as tax changes and stricter underwriting standards restrict buy-to-let investment. It also highlighted the market in London, saying adverse affordability means the capital will see a sharper slowdown than elsewhere. Elsewhere, there are "few signs" of significant stresses and imbalances at present, it said. London's underperformance has also been a theme of 2016, with Brexit and an increase in stamp duty weighing on the market. Luxury home prices in some of the most expensive districts are down more than 10 per cent this year and land values are also dropping.