Thursday 11 July 2019 12:01 am

Prospective buyers eye up London housing market

Prospective house buyers are eyeing up the London property market as enquiries rise for the first time this year.

Net first time buyer enquiries reached the highest number since 2016 last month in a sign that the London sales market is settling down. 

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In June, 23 per cent more respondents to the Residential Market Survey by surveying professional body Rics saw a spike in interest from new buyers.

Alongside an increase in buyer interest, more London homeowners are also considering putting their properties up for sale. 

In total four per cent more chartered surveyors reported a rise in new instructions. 

Agreed sales remained negative, however, sales expectations for the next 12 months hit the highest level since February 2017.  

In the lettings market, rents in the capital are forecast to rise by 2.4 per cent a year over the next five years. 

Despite the uplift in the market, analysts said challenges in the industry remain unresolved. 

RICS chief economist Simon Rubinsohn said: “The latest data provides further evidence of the sales market settling down, but I don’t get the impression from the insight provided by contributors that this is fuelling hope of a significantly more active market going forward.

“Many of the factors that have provided a challenge during the first half of the year remain unresolved.

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“Meanwhile feedback on the lettings market continues to highlight the impact of the policy changes announced in recent years. 

“Build to Rent should in time help take up some of the slack in parts of the country but the RICS indicators capturing rent expectations suggests there is no expectation this will be the case anytime soon.”