Survey finds house prices in London have dropped post-Brexit

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3rd August 2016 16:59 - Housing

Survey finds house prices in London have dropped post-Brexit: According to the Royal Institution of Chartered Surveyors (Rics), property prices in the centre of the capital have taken the most significant hit.Survey finds house prices in London have dropped post-Brexit

Surveyors in London disclosed falls in house prices, whereas property prices in the rest of Britain were discovered to be increasing overall.

Values in London were found to be double the national average, following a surge after the financial crisis. This could be attributed to a wave of foreign buyers.

However, the supply of properties entering the housing market has declined since the British public voted to leave the European Union, the survey revealed.

The Royal Institution of Chartered Surveyors said that the decline could be attributed to the rising stamp duty on second home purchasers and landlords.

The survey also revealed that surveyors are anticipating a drop in prices over the next three month; however, in the long term house prices are expected to be approximately 14 per cent higher than they currently are.

Chief Economist at the Royal Institution of Chartered Surveyors, Simon Rubinsohn, said that elections and other large events generally do rock markets, so it does not come as a shock that the EU referendum was followed by a slowdown in activity.

Although, Rubinsohn also suggested that it is possible that the housing numbers would have slowed down during the second quarter, even without the Brexit vote, following the surge in many parts of the UK from buy to let investors to finalise purchases before the tax changes.

The data from the Royal Institution of Chartered Surveyors suggested that the decline in activity will continue throughout the next few months, with the main influence being how the economy performs following the uncertainty sparked by Britain’s vote to leave the EU.

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