Brexit uncertainties to cause 'broadly flat' house price growth in London
In a recent survey conducted by Bloomberg News, 10 out of 14 economists said future political economic uncertainties would likely stall London house prices for the coming years.
According to Rightmove, compared to the same period last year asking prices had risen in the nation's capital by an average of 1.6% in August.
While an improvement on the numbers displayed in July, it was still a significantly lower figure than peaks of over 20% posted back in 2014, and just the second time the increase has topped the 1% mark.
On that occasion, Russell Galley, managing director of Halifax, said, "The rise in the employment level by 175,000 in the three months to May helped push the unemployment rate down to 4.5%, the lowest since June 1975. However, this improvement in the jobs market has not, as yet, boosted wage growth, resulting in earnings rising at a slower rate than consumer prices. This squeeze on spending power, together with the impact on property transactions of the stamp duty changes in 2016 now being realised, along with affordability concerns, appear to have contributed to weaker housing demand."
Also in July, Nationwide's chief economist, Robert Gardner, said: "Survey data point to relatively sluggish levels of new buyer enquiries, but at the same time surveyors report that relatively few properties are coming onto the market at a time when the number of homes on estate agents' books is already close to thirty-year lows."
"Ultimately, housing market developments will depend on wider economic performance. The UK economy slowed noticeably in the first half of the year and there has been little to suggest a significant departure from recent trends in the quarters ahead."
For his part, Phillip Shaw of London-based specialist bank, Investec Securities said he expected low single-digit growth in home values across the UK with London remaining "broadly flat" until more information can be gained regarding Brexit negotiations and the future of the UK's relationship with the EU.