A slow start to the residential market in 2017 is expected due to a lack of stock, surveyors have said.
The Royal Institution of Chartered Surveyors (Rics) has reported slowing property transactions since spring this year.
Although the market may pick-up in the new year, any increase would be “modest”, it said.
Earlier this week, mortgage lender Halifax also reported that house price growth may slow in the coming months.
However, it did say that property prices had accelerated in November, a finding echoed by Rics, which reported that house prices are rising rather than falling moving into the new year.
Enquiries from potential new buyers also recorded an increase, added Rics.
But with a shortfall in the number of homes entering the market, there will be little breathing room for these buyers.
Simon Rubinsohn, RICS Chief Economist, said: “A key issue for the housing market is the slowdown in transaction activity since the spring, which is clearly being reflected in the RICS Agreed Sales data as well as in official figures.
“Although there are some signs that the numbers may begin to edge upwards in the new year, the combination of macro-uncertainty, the ongoing supply shortfall, with stock levels around historic lows, and the myriad of tax changes impacting on buyers suggest that any pick-up in activity will be relatively modest.
“This is significant, not just for the housing market itself, but also for the wider economy given how much of consumer spending is tied in with home purchases.”