The house prices in London have been cooling down after the Brexit vote. Much of that is being blamed on the lack of confidence in home buyers that would have rushed to the opportunity previously to grab up an available property at the top asking price. No more. Both home buyers and investors are holding back and that trend is expected to continue next year.

That doesn’t mean that the outlying areas of London will suffer declining house prices. Those areas with more affordable housing that allow easy commutes to the capital will likely show an increase in demand.

According to the Centre for Economics and Business Research (CEBR), London properties will be in less demand and the impact will make the capital less of a seller’s market and more of a buyer’s market. The average London house price is set to drop by 5.6% next year, according to CEBR.

Across the UK, the average house price will slow to growth of 2.6% next year, down from the expected growth level of 6.9% for 2016.

Kay Daniel Neufeld, an economist at CEBR, remarked, “Nervousness and uncertainty are starting to show. We expect to see house-price growth across the U.K. slowing considerably in the fourth quarter of 2016, a trend that is set to continue in 2017.”

The impact of Brexit which will include increased inflation, a higher jobless rate, and a slowing down in business growth will play out in the housing market. 

Of course, this may bring back the first time buyers which have been anxiously trying to climb onto the property ladder. This would be an injection into the housing market that could provide a needed boost.