Britain’s housing market is being haunted by Brexit as demand has hit an eight-year low.
A survey by the the Royal Institution of Chartered Surveyors (Rics) has found that the supply of homes has fallen sharply with house prices expected to fall across the UK in the next three months.
The report found that a net balance of 45 per cent more surveyors saw a fall rather than an increase in homes being put on the market during June while a balance of 36 per cent of surveyors reported new buyer inquiries falling rather than increasing.
Simon Rubinsohn, Rics chief economist, said: “Big events such as elections typically do unsettle markets, so it is no surprise that the EU referendum has been associated with a downturn in activity.
“However, even without the build-up to the vote and subsequent decision in favour of Brexit, it is likely that the housing numbers would have slowed during the second quarter of the year.
“Rics data does suggest that the dip in activity will persist over the coming months, but the critical influence looking further ahead is how the economy performs in the wake of the uncertainty triggered by the vote to leave.”