House prices in central London continued on a downward trend according to the latest survey by the Royal Institution of Chartered Surveyors (Rics).
The research showed the net proportion of property professionals reporting a fall had increased by 35% in May.
And London surveyors predict downward price pressure building over the coming quarter with 43% more contributors forecasting a drop.
Rics chief economist Simon Rubinsohn said: “Sadly, for the many young people looking to enter the property market, it is unlikely that we are seeing the emergence of a more affordable market.
“Instead, it appears to me that we are looking at a short term drop caused by the uncertainty resulting from the forthcoming EU Referendum coupled with a slowdown following the rush to get into the market ahead of the tax change on the purchase of investment properties.
“Certainly, that’s the story we are hearing from our members. There is not at this point a sense that a fundamental shift is taking place in the market.”
More than half of the professionals surveyed said that demand went down for a fourth consecutive month in May.
And agreed sales fell for a third month with a net balance of 59% of respondents reporting a fall rather than a rise in activity.
There was a reported rise in new landlord instructions in the lettings market while tenant demand remained stable over the last three months.