London house prices are showing the weakest readings since 2008, the RICS Residential Survey has revealed.
Prices in the capital remain in negative territory and are expected to be so for the next 12 months, whilst prices in the South East are reporting a fall rather than increase in prices for the third consecutive month.
East Anglia and the North of England were the only other regions to return to marginally negative price balances.
Marie Grundy, sales director at West One Loans, said: “The housing market has faced a tough time in recent months but despite this, we’re cautiously optimistic that the sector will pick up again in due course.
“A seasonal lull can be expected at this time of year, although it may take time for the market to regain a more positive note, which we believe will happen.
“In large part, this is because the chasm between supply and demand persists and cannot be quickly fixed, but also because we are in a period of prolonged economic uncertainty which is only set to continue as Brexit negotiations take place.”
Elsewhere in regions such as the North West, Northern Ireland, Scotland and the South West the largest price increases were seen; with property prices in Northern Ireland and Scotland most likely to see further price growth over the next three months.
The average number of properties on agents’ books in the capital has risen from 26 to 36 since February, whereas all other regions have seen stock levels decline over the same period.
The survey outlines that a majority (61%) of people felt there would be more landlords exiting the market over the coming year, compared to 12% who felt there would be a greater number of entrants.
Richard Sexton, director at e.surv, added: “To ensure that the housing market continues to grow and remains fluid, the housing shortage and lack of affordable homes must be acknowledged.
“Recent data highlighted that the UK would have to build a home every three minutes to repair the housing deficit.
“The government has the support of the industry behind it, so now we must work to address this problem to get more people, particularly in bigger cities, onto the housing ladder.”
Over the next five years, the RICS survey outlines that rental growth is set to outpace that of house prices, averaging 3% per annum.