House prices in London continue its decline amid reducing demand for homes in the capital, Bloomberg reports with the reference to Royal Institute of Chartered Surveyors.

During last six months there were more agents signaling about price fall than about price gains. At national level prices stayed at comparatively stable level.

House prices in UK are falling after three-decade boom made it unaffordable for many. Slowing economic growth and decision to exit EU, suppressed demand for houses, especially in London. As a result, sales volumes have been dropping for 16 months.

Number of people looking for house in London almost did not change last months, and experts do not see any possible reasons for improving situation in the second half of this year.

Changes in tax rules might have unintended consequences. It is understandable that government wants to inspire first-time buyers, but as a result rent will grew up since appeal of buy-to-let option diminishes.