The London housing market remains sluggish, with house prices expected to keep falling in the next three months.
According to a survey by the influential Royal Institution of Chartered Surveyors (Rics), house price expectations for the capital are the weakest they’ve been since 2009.
In addition, the majority of surveyors are observing a fall in transactions. This will be a particular problem for London-focused estate agents such as Foxtons, which have already been hit by plummeting profits.
London’s lettings market is also on shaky ground. Rics surveyors reported a drop in tenant demand for the seventh month in a row in March, and the number of new landlords entering the market is also falling.
It is expected that, as a result, rents will fall in the near term. Rents started falling around the beginning of this year, and in March, average rents fell by 0.7 per cent, according to analysis by Landbay.
Read more: What? Rents continue to fall in London
Simon Rubinsohn, Rics chief economist, said: “The latest results for the Rics survey show little change in the underlying picture surrounding both sales and markets. High end sale properties in central London remain under pressure, while the wider residential market continues to be underpinned by a lack of stock.
“This includes rents, with rents away from the capital generally moving higher as demand outstrips supply.”