London, 1st November 2016. Felicity Young, +44 (0)20 7087 5108 JLL’s latest forecasts, released today, concludes that Brexit will dominate UK housing markets over the short to medium term but predicts that the market will remain reasonably strong and active despite the greater uncertainty and slower economy resulting from Brexit. JLL are forecasting that UK house prices will increase by 0.5% next year with a further 1% growth in 2018. House price growth is predicted to rise to 5% pa by 2021 as greater certainty returns to the nation following Brexit. Transaction levels are forecast to decline from around 1.22m this year to 1.08m next year, an 11% fall, as uncertainty causes some households to defer house purchase decisions. However, JLL predict that the softer market conditions will encourage more first-time buyers to get onto the housing ladder, especially as interest rates will be so enticing. Neil Chegwidden, Residential Research Director at JLL, comments: "We are expecting UK housing markets to slow from current levels both in terms of transactions and price growth next year. This will be driven by Brexit uncertainty and a slightly softer economy. The outlook, however, is particularly unpredictable presently. Over the next couple of years we expect periods of volatility in terms of household and business sentiment as the Brexit roadmap unfolds but the underlying shortage in supply will provide support in value terms. "JLL are very concerned about the impact that Brexit will have on housing supply. JLL welcome fresh and new rhetoric from policymakers both nationally and in London, but believe that it will be very difficult to even maintain current levels of housebuilding given underlying conditions. Housebuilders will inevitably exercise greater caution when times are more uncertain. Despite government initiatives JLL are forecasting England housing starts will slip from around 140,000 homes in 2016 to 134,000 next year and in 2018. "In London we expect housing starts to fall from around 18,000 homes in 2016 to 16,000 next year, having reached 23,700 starts in 2015."