House prices and rents expected to rise in South West after general election and Brexit

House prices and rents are expected to rise in the South West after the general election and again when the UK leaves the European Union , a new report has revealed.

The region’s housing market is currently subdued, according to the RICS UK Residential Market Survey, but agents believe property prices will pick up in the next 12 months.

A total of 27 per cent of agents in the South West think house prices will increase after the election.

Last month, two per cent reported a rise in new buyer enquiries, but newly agreed sales remained negative for the fourth month in a row. There has also been a fall in new instructions to sell in the region.

However, 16 per cent of agents expect to see sales increase over the coming three months - up from -4 per cent in September.

Miles Kevin of Chartsedge in Totnes said: “The Brexit effect is making the market continue to stagnate, and with the election in December I can’t see the market changing until late first quarter of 2020.”

Rental prices are also expected to rise (Sunday Mirror)

In the lettings market, 26 per cent of respondents in the South West saw an increase in tenant demand and 24 per cent expect rents to rise over the coming three months.

The survey revealed that rental growth expectations for the near term have strengthened across all UK regions due to rising demand outstripping supply - and an increase in rents is expected over the coming three months.

Simon Rubinsohn, RICS chief economist, said: “Both buyer and seller activity remains in a holding pattern, hampered by political and economic uncertainty.

“Given the upcoming general election next month, it appears unlikely that these trends will pick-up to any meaningful extent over the remainder of this year.

“The picture remains very different on the lettings side however, with tenant demand gathering momentum over recent months.

“This is running against an increasingly tight supply backdrop for rental properties and seems set to squeeze the pace of rental growth higher going forward.”

Tamara Hooper, policy manager at RICS added: “The regular changes to the private rental sector regime has decreased stability and standards for tenants.”