UK housing hit by weak demand with no pickup in sight

Bloomberg

The UK property market is wilting from lack of demand, leaving home prices unchanged for a second month in March. The Royal Institution of Chartered Surveyors said its gauge of prices remained at zero, with declines in London and the southeast being offset by gains in the East Midlands, Northern Ireland and Wales.
Years of rampant price gains have stretched affordability in London, where demand from buyers continued to fall in March. Property in the capital has also been roiled by tax changes and the country’s decision to leave the European Union, and estate agents reported an increase in the number of homes being withdrawn from sale.
“Stamp duty and Brexit have killed the fluidity of the London market, said Toby Whittome at realtor Jackson Stops. “Only when the extent of the resulting economic damage is properly understood will things be able to change for the better.”
Nationally, new buyer inquiries fell for a 12th consecutive month, reflecting affordability concerns and a lack of fresh properties coming onto the market, RICS said. The number of houses being put up for sale declined further and average stock levels remained near an all-time low. The findings “provide little encouragement that the drop in housing-market activity is likely to be reversed anytime soon,” said RICS Chief Economist Simon Rubinsohn.