The looming in-out EU referendum poses the biggest threat to the prime Central London residential market and its ability to retain a positive growth trajectory.
Meanwhile, the lettings market continues to falter, with rents slipping in many areas.
Key highlights from the report include:
- House price growth continued to slow in the face of rising affordability issues and with banks lowering mortgage multipliers, first –time-buyers risk being pushed into renting for longer
- The weakness of sterling is impacting some Asian buyers, who’s London assets are depreciating in value, which may trigger premature sales; however buyers from the Middle East are seeing a currency advantage open up
- In the lettings market, rental growth turned negative for the first time in almost two years. This is in part linked to burgeoning supply levels at every price point, whilst tenants continue to drift further out of the prime core in search of perceived value for money.