Property prices in London have slumped once more in August. Since the Brexit vote last year, the UK property market has been wavering. Policy changes meant more landlords will pay more taxes. The recent breaches of public safety could also have far-reaching effects.
While London’s real estate sector flails, markets in other parts of the UK are holding up comparatively well. Numbers from the Royal Institution of Chartered Surveyors have shown a modest recovery from July’s 4-year-low figure. Only in the prime Central London area has asking prices fallen below what buyers are willing to fork out.
Northern Ireland, Scotland and North-western districts have been buoyant. Sales have remained level since November 2016. Home prices have risen the most in August as the market experiences a brief sense of relief.
Rental market may pick up as supply falls
Moving ahead, property analysts are expecting more landlords exiting the market. And with this, supply of rental units will decrease. Hence demand will increase. And this could mean the rental market will fare much better with a growth of 3% over the next 5 years. This is far more than the 2% rise in property prices projected in the same time period.