Housing demand is beginning to recover in London, with surveyors reporting the first rise in new buyer enquiries in over a year in April. Activity in the prime central London market is also set to receive a boost now that a Mansion Tax is no longer on the cards. The strong economic backdrop in the capital will allow demand and sales to recover gradually over the next year. But with house prices already at record highs in relation to earnings, and new mortgage regulations keeping a lid on loan-to-income ratios, any further rise in values will be limited.
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