United Kingdom economic growth predicted to slip to 1.5% in 2017

United Kingdom economic growth predicted to slip to 1.5% in 2017

However, the average residential property could be worth approximately £220,000 in 2017, some £8,000 higher than in 2016 and could rise to over £300,000 by 2025, according to the economic outlook report from PwC.

House prices were forecast to slow further in the short run.

PwC said the impact of Brexit uncertainty had mainly been felt in housing transactions, which have been down year-on-year for 12 consecutive months.

'Economic growth held up better than expected in the six months following the Brexit vote, but slowed in the first half of 2017 as inflation rose sharply, ' says the PwC report, which is published today.

"Where concerns should perhaps be focused is around wage growth as many are offsetting limited growth through increased borrowing - which may have a longer term impact via interest rate rises or employment downturn".

On the other hand, the weak pound should also have some offsetting benefits for net exports as will a stronger global economy, PwC said.

Inverclyde has seen a 19% drop in prices since 2007, East and North Ayrshire a 17% decline and West Dunbartonshire a fall of 13%.

PwC's analysis has also found London's housing market has seen a structural shift recently, as house price growth has moved outward from the capital.

According to the auditors, increases in the average cost of owning a home in Britain were set to slow to 3.7%, down on the 7% seen in 2016, growing at an average pace of about 4% thereafter.

London has so far experienced the biggest slowdown, with price inflation of 4 per cent in the first four months of 2017 compared with around 13 per cent for the same period past year.

Brexit uncertainty is showing signs of affecting housing market growth in the United Kingdom with the latest forecast suggesting prices will rise by 3.7% in 2017, down from 7% in 2016.

A Scottish Government spokeswoman said: "The Scottish economy grew by 0.8% in the first quarter of this year - four times the UK-wide rate for the same quarter and the highest rate of quarterly growth in Scotland since the end of 2014".

The spokesman added: "We will continue to do everything possible to support the performance of Scotland's economy, including through our £6.5bn infrastructure plan and new £500m Scottish Growth Scheme".