The Monetary Policy Committee Inflation Report said “The outlook for housing market activity is judged to be somewhat weaker than projected three months ago".
The Intermediary Mortgage Lenders Association said the EU referendum is only partly responsible for the housing market slowing down.
Today the Bank of England cut its growth forecast for 2016 to 2%, down from 2.2% in February, while the Monetary Policy Committee's Inflation Report said “the outlook for housing market activity is judged to be somewhat weaker than projected three months ago".
It added: “There are increasing signs that uncertainty associated with the EU referendum has begun to weigh on activity.”
But Peter Williams (pictured), executive director of IMLA, responded: “External factors like the EU referendum are only partly responsible for the Bank of England judging the outlook for the housing market to be weaker than it did three months ago.
“The recent spike in housing market activity has clearly been self-inflicted by the UK government’s changes to stamp duty land tax and it will be some time before the full impact emerges.
“By that point, the Brexit vote will have a more decisive impact on the trajectory of the housing market and the wider economy. In the medium to long-term, robust demand from existing and potential owner-occupiers should keep transaction levels stable. Nevertheless, the market is in a sensitive period and needs handling with care.”
