The index of housing prices in London fell to a seven-year low


The price index for residential property in London in June fell to minus 46 from minus 35 in may, reaching the lowest level since 2009, said Thursday, Bloomberg, citing data from the Royal institution of chartered surveyors (Royal Institution of Chartered Surveyors, RICS).

The index of housing prices across the UK fell from 19 in may to 16 in June, reaching its lowest level since January 2015, according to the RICS. The index of price expectations in the short term, fell to minus 27, and the index of expectations for prices in 2017 from 54 to zero.

The RICS study is based on the results of a survey of appraisers, which was held from June 24 when he was declared the outcome of the referendum, until last week. The data allow for the first time to see the impact of Brexit on the British housing market, says Bloomberg.

According to RICS, demand for residential property across the country in June fell to its lowest level since mid-2008. In the next three months, market participants expect the weak sales for the last 28 years. In addition, they documented the continuing decline in the number of new properties listed for sale across the UK, except Northern Ireland. To reduce the number of new objects RICS has advised more than 45 percent of evaluators, while in may there were 31%. The study notes RICS is the sharpest drop in its history.

The index of housing prices across the country fell from 19 in may to 16 in June, reaching its lowest level since January 2015. The index of price expectations in the short term, fell to minus 27, and the index of expectations for prices in 2017 from 54 to zero.

RICS chief economist Simon Rubinsohn noted that even without a referendum, the number of transactions in the housing market in the second quarter of this year, most likely, would have fallen. According to him, the findings suggest that the market downturn will continue in the coming months.

The results of the referendum “is clearly upset many buyers and sellers, and it is obvious that some of them reconsider their actions and/or attempt to renegotiate the price,” admitted in a joint research company Acadata and LSL Property Services. At the same time in their study, they indicated that housing prices began to decline even before the referendum. According to the companies, in may prices fell 1.4%, showing the largest decline for the month of June 2011.