The brief rise in London buyer activity proved to be short lived, suggesting that the capital’s housing market malaise has further to run. Indeed, even if a no-deal Brexit is avoided, we expect London’s house price decline to intensify, with prices to end 2019 down by 3%, before falling by 1% in 2020. Meanwhile, despite support from Help to Buy, housebuilding in London has run out of steam. But with the imbalance between rental demand and supply in London growing, the outlook for rents is stronger. Indeed, we think that rents will surge by 10% by the end of our forecast period.
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