House prices in prime central London are expected to fall in the next three months due to a lack of confidence in the sector.
According to a survey by the Royal Institution of Chartered Surveyors (Rics) , 38% more surveyors expect the drop, while 43% believe sales volumes will also go down.
Respondents to the survey referenced changes in Stamp Duty, the EU referendum , a drop in the value of the pound and electoral uncertainty as potential reasons for the dip in the prime central London market.
Strutt and Parker’s Michael Fiddes said: “We have just begun weathering the Stamp Duty issues with buyers adjusting to the new reality that hindered the top end market and are about to find lack of confidence around Brexit affecting it.”
The slowdown after the buy-to-let rush has been felt across the country but most keenly in London where new buyer enquiries were down on the previous month. Almost 60% more surveyors saw a decrease in demand than a rise.
Rics chief economist Simon Rubinsohn said: “All indications suggest that whatever the outcome of the forthcoming elections and referendum, in the long-term, the imbalance between demand and supply will still exert a strong influence on the market, with house prices expected to rise by close to 25% over the next five years.”