UK residential property prices rose modestly in the UK during May, although they are now likely to fall in the wake of Brexit.
The latest market survey report from the Royal Institution of Chartered Surveyors also stated that central London experienced a fall in values, while house prices in the UK are set for a short term drop for the first time in four years.
Central London house prices are already on a downward trend according to the study, with 35% more property professionals reporting a fall in prices rather than a rise over the last month.
While the rest of the UK is continuing to see a modest climb in property prices, this trend looks set to be short lived, with a further 10% of respondents anticipating a fall in property prices over the next three month period.
Such a fall in property prices has not been seen since 2012, while the worst hit areas are expected to be London and East Anglia, with 43% and 33% of respondents estimating a price fall over the next quarter.
RICS Chief Economist, Simon Rubinsohn, said that for young people who are looking to enter the property market, the situation looks bleak as it seems unlikely that we will see the emergence of a more affordable housing market.
He added: “Instead, it appears to me that what we are looking at is a short term drop caused by the uncertainty resulting from the EU referendum coupled by a slowdown following the rush to get into the market ahead of the tax change on the purchase of investment properties.”
The market study also demonstrated that throughout the UK buyer demand fell for the second month in a row and at its fastest rate since 2008, with 33% more property professionals stating that demand decreased in the last month.