London Property Price Stalled at Neutral but crash unlikely

Property prices will remained neutral for some years, courtesy of Brexit and a shaky economy, but a serious crash still looks unlikely. Asking prices in the capital rose 1.6 percent in August from a year earlier, Rightmove Plc said earlier this week. While that’s up from the July pace, it’s well below a 2014 peak of more than 20 percent and only the second time this year the the annual rate of increase has exceeded 1 percent.

Ten out of 14 economists surveyed by Bloomberg News cited political and economic uncertainty as a reason prices are stalling while seven said tax changes for landlords were at fault.

Only six attributed the slowdown to affordability issues in a market where prices have almost doubled since 2009.

PricewaterhouseCoopers LLP predicts that price growth will continue to slow in 2018 and 2019.