London Housing Market: The RICS’ monthly UK residential market survey reported a steady decline in the UK housing market continued through the month of October. This was a result of the steep decline in demand from both buyers and sales, which has led to a fall in house prices in the London housing market.
The figures released by the survey of chartered surveyors revealed that there was a decline from interested buyers with about 20% of respondents interviewed witnessing a drop in new buyer inquiries during the month. In the same vein, agreed sales also witnessed a drop as well in its figures. According to RICS chief economist, Simon Rubinsohn, factors like the cost of moving, Brexit-related uncertainty and the recent interest hike are responsible for the national decline that is being witnessed in the country.
He retreated this by saying a combination of factors such as an increase in the cost of moving from one house to another, a lack of new stock being introduced into the market, uncertainty in the political sphere as a result of the Brexit talks coupled with a new interest rate hike are all taking their toll on activities in the UK residential market.
The figure also shows that respondents continue to register a decline in London housing market, with about 63% more respondent reporting a decrease in price instead of an increase during the month of October. This figure represents the lowest since 2009. While on the national level, about 1% more surveyors registered an increase in price instead of a decrease. This figure represents a drop from about 6% that was reported in September. The gleam projections for the London housing prices are being reflected in mainstream forecasts. Real estate agents Savills are forecasting that there would be further fall in prices by about 1.5% in 2017 and a further fall of about 2% in 2018, this would happen before prices would stabilize in 2019 and then return to growth from then onwards.