London's househunters have received some purse-friendly news after property prices continued on their six-month decline.
The capital was the only place in the country where surveyors reported price drops, rather than rocketing asking fees.
The rest of the country is faring better because of the demand supply imbalance, according to the latest findings by RICS UK’s Residential Market Survey.
Here, stock levels are at their lowest since last February - with 17 per cent of surveyors recording a fall - and new buyer enquiries have lessened to show a net balance of -15 during the past month.
RICS chief economist Simon Rubinsohn said: “The anecdotal evidence that political uncertainty is causing at least a short term slowdown in some markets including the capital highlights the extent of the challenge policy makers will face in addressing the housing crisis in the aftermath of the coming general election.”
In London’s lettings market demand is rising as sales slow.
Statistics show a 34 per cent rise in demand in the three months until the end of January compared to zero per cent in the same amount of time leading up to October.
Experts have also witnessed a 21 per cent boom in instructions.
While prices are falling in the capital, the pace of change has declined.
A net balance of 28 per cent in downward fees has been recorded, compared to 46 per cent in January.
During the next three months 13 per cent predict further decreases though there is a confidence prices will be 1.9 per cent higher within the next year.
Simon added: “Even in the capital, where the key RICS indicators remain in negative territory, there is a strong view in the survey that property will become even more unaffordable over the medium term.
“Respondents suggest, on average, that house prices will rise by a further 30 percent in the capital over the next five years.”