London house prices taking a hit from Brexit

By BLOOMBERG

LONDON • London’s house price slump left UK values stagnating for a fifth month in September as Brexit concerns and interest-rate rises discouraged buyers.

The UK’s negotiations over leaving the European Union (EU) dominated the concerns of London agents in the monthly survey from the Royal Institution of Chartered Surveyors (RICS). They said there hasn’t been much of a pickup after the traditional summer lull, with buyers more cautious and sellers forced to cut prices to secure an offer.

Nationwide, prices weakened slightly last month, RICS said in a report yesterday.

Brokers in the capital reported the steepest slide in home values, with the southeast and East Anglia deteriorating. That was offset by increases across much of the rest of the country.

New buyer demand declined for the second successive report, with the institution’s forward-looking sales expectation indicators turning more pessimistic.

The UK housing market has lost its momentum after a three-decade boom that was fanned by a shortage of supply across the country.

London, which led the explosive gains, is now bearing the brunt of concerns over the economic and political outlook ahead of Britain’s divorce from the EU.

Shares of house builders fell yesterday. Barratt Developments plc and Countryside Properties plc were both down about 10% as of 10:20am in London.