London’s housing market stagnated in November as the rest of the country recovered
London house prices have been stagnating as prices across the UK have started to recover, chartered surveyors have said.
According to a survey by the Royal Institution of Chartered Surveyors (Rics), the number of prospective buyers in the UK housing market increased in November, leading to a rise in sales.
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Most of the UK is seeing an increasing in house prices, Rics said, but the survey respondents were less upbeat about London. Large homes in London are expected to show the lowest growth, due to tax changes in 2014.
There has also been a drop in demand from tenants in London's rental market.
House prices in London are being dragged down by high-end homes in the centre of the capital. Research by Propcision has revealed that several million-pound homes in some of London's most sought-after areas have had their prices slashed by over 30 per cent.
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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 up in the new year, the combination of macro uncertainty, the on-going supply shortfall and the myriad of tax changes impacting buyers suggest that any pick up in activity would be relatively modest."