House price growth in the UK is likely to come to a halt next year and transactions will reduce.

The forecast from the RICS says that average house prices are likely to stagnate rather than drop because of lack of supply.

However, the RICS does believe that prices will drop in London and the south east, but that these declines will be offset by rises in other regions.

The RICS said that overall levels of activity this year had been “a little underwhelming”, with buyer enquiries stalling and sales volumes stagnating.

It said that over the course of 2018, the main issue will remain one of supply.

The RICS warned that there are no signs as yet that 2018 will see a turnaround in supply across the secondhand market.

Tarrant Parsons, RICS economist, said: “Following a pretty lacklustre finish to 2017, the indications are that momentum across the housing market will be lacking as 2018 gets under way.”

The Halifax has also issued its forecast for next year, conveying much the same messages.

It said there would be ‘modest’ house price growth of between 0% and 3% next year.

Halifax managing director Russell Galley said: “Supply has now fallen in 21 consecutive months to November.

“There is little reason to expect any fundamental shift in the key housing market drivers in the immediate future.”

Separately, estate agency haart has reported a drop in sales of 10% in November, measured year on year.

It said that on a monthly basis, sales were down 2.3%.

However, CEO Paul Smith said that in London, 15% more properties were put on the market than at the same time last year.

He also said that the number of landlords registering to buy is down 38% year on year. “We continue to see more leaving the market every month,” he said.