London housing market bearish in face of Brexit, chartered surveyors say

Sentiment among London’s chartered surveyors is among the worst in the country, with house prices expected to fall in the capital over the next year, new figures show.

In a poll of its members, the Royal Institution of Chartered Surveyors (RICS) found London and the South East were the only two parts of the country where prices are expected to fall in the coming 12 months.

Read more: Housing demand slumps but first-time buyers pounce on 'cautious market'

However, the outlook is only “marginally negative,” it said.

Across the UK the number of houses being sold is expected to fall somewhat until July, when the downwards trend is projected to reverse.

The survey, which takes the temperature of the market, found the number of respondents who thought house prices will be higher in a year increased.

Simon Rubinsohn, RICS chief economist, said: “Brexit remains a major drag on activity in the market particularly in the capital with anecdotal evidence pointing to potential buyers being reluctant to commit in the face of the heightened sense of uncertainty.

“Whether any deal provides the shift in mood music envisaged by many respondents to the survey remains to be seen but as things stand, there is little encouragement to be drawn from key RICS lead indicators.”

The survey found that buyer appetite has declined recently.

Read more: Brexit uncertainty will drag down London house prices over 2019

Meanwhile, demand from tenants has continued to rise in the lettings market, and respondents are expecting rentals to grow by around two per cent in the next 12 months.

“It would appear that landlords are seeing a more positive climate, with average rents increasing across the first quarter of this year, as is to be the expected outcome of fewer currently active investors,” said Brian Murphy, at the Mortgage Advice Bureau.