<p> </p> <p> </p> <p>Post referendum economic uncertainty and weaker consumer sentiment signal a period of low house price growth and significantly lower transaction levels, according to new five year forecasts from Savills.</p> <p>Negotiations to leave the EU are expected to take two years, during which time buyer sentiment will remain fragile, says the firm. Interest rates are forecast to stay low for longer, which will prevent a market correction. At the same time, buyers will be reluctant or unable to stretch their borrowing, leaving little or no capacity for house price growth depending on location.</p> <p>The firm thinks that from 2019 greater economic clarity will bring improved consumer confidence, creating greater capacity for house price growth although this will be constrained by interest rate rises, particularly in the higher value markets. As a result, UK mainstream house price growth is forecast to be marginal over the next two years and total just 13% in the next five. </p> <p>“There is no precedent for the current market and the Brexit vote makes forecasting more challenging than perhaps ever before,” said Lucian Cook, Savills UK head of residential research. “The effect of Brexit is complicating a natural shift towards the later …