- RICs says 49% more members see prices fall in London than rise
- Prices tipped to keep falling in months ahead in capital
- But RICs members expect most of rest of UK to see house prices climb
- Overall UK market cooling despite stamp duty cut and low mortgage rates
London house prices declined for the fifth month in a row in January and are forecast to keep on falling by surveyors and estate agents.
It was the only region in the UK to see prices fall last month, according to the latest Royal Institution of Chartered Surveyors report, widely considered as a key barometer for the property market.
The capital’s previously soaraway property market dramatically ran out of steam late last summer. Today RICs revealed that 49 per cent more of its members surveyed said prices fell rather than rose in London last month.
The report added that 24 per cent more expected prices to continue to fall rather than rise in the three months ahead. RICS said the housing market across the UK was showing a ‘very mixed picture’ – robust growth in Scotland and Northern Ireland contrasted with more sluggish sales elsewhere.
RICS said that anecdotal evidence from surveyors suggested that a ‘multitude’ of factors were having different impacts across the UK, with political uncertainty being a factor generally.
It said the recent stamp duty reforms announced in the Chancellor’s Autumn Statement were already providing a boost in areas such as South West England and Scotland.
These cut the cost of stamp duty for almost all home buyers purchasing a property for less than £937,000. The tax changed from being levied slab style on the entire purchase price, with big jumps in tax bills around thresholds, to a graduated system more like income tax.
The biggest boost from this came to buyers just above the old £250,000 and £500,000 thresholds for the 3 per cent and 4 per cent levy, who previously saw bills jump substantially.
This was expected to boost the property market, especially as it came at a time when fixed mortgage rates have fallen to record lows. The effect so far has been limited, however.
Source: thisismoney.co.uk