House prices in London could be about to see their first fall since the financial crisis, according to a panel of 30 housing market experts assembled by Reuters.
The survey found a consensus that the impact of Brexit on the housing market would bear down on property investment everywhere, with the mean prediction for average house prices across the country as a whole being an increase of just 1.7 per cent in 2018 - a real terms fall as Consumer Price Index inflation is expected to run at about 2.5 per cent.
In London, where high rates of house price inflation in recent years have been fuelled by overseas investors, a decline in buyer numbers will ensure a price drop in absolute terms, with the average prediction being a drop of one per cent this year. However, individual panel members varied widely in their London forecasts from a rise of 2.5 per cent to a plunge of six per cent.
The panel noted that while property in the UK is cheaper for foreign buyers due to the lower value ofcontinue reading →