London’s property prices are dropping, but a lack of housing is pushing rents up five per cent a year, according to a study from property group Haart.
According to the study, the average property price in London fell by 3.7 per cent in April, down 3.4 per cent year-on-year.
Meanwhile, rental stock is down 40 per cent, according to Haart, driving rents up by five per cent and far surpassing the growth of average take home pay.
The number of new buyers entering the London market rose by 0.9 per cent lost month and is up by 6.8 per cent from the same month last year.
Meanwhile, sale transactions in London rose by 16 per cent on the month, however they fell by 1.4 per cent year-on-year.
The number of new buyers entering the market has risen by 0.9 per cent on the month and is up by 6.8 per cent on the year.
Paul Smith, CEO of Haart, said that the would be buyers in the UK are being kept out of the market due to the lack of supply in the market.
“The number of homes available to buy is still hovering below pre-referendum levels, despite a significant jump on last month,” said Haart.
“The UK’s undersupply of properties continues to hold back fluidity within the market, and thousands of Brits remain in homes that no longer suit their needs.”
“The current state of the market is becoming unsustainable for many,” Smith added.
Elsewhere in the UK, the Haart study showed that house prices across England and Wales fell by 1.7 per cent in April, but were up 1.2 per cent year-on-year. The average house price across both regions now sits at £225,833.