As Bloomberg informs with reference to economists’ survey, London property prices that doubled during last ten years will probably continue going down within next three years.

Prices might decrease as much as 10% during mentioned period.

Years of housing prices growth in the UK capital, which market is valued at 1,8 trillion pounds, resulted in a huge affordability problem. Investors left the market due to changes in tax law. While they were replaced by first home buyers in other parts of the country, it did not happen in London. The reason is in extremely high prices of property that most could not afford. Even lower demand due to Brexit as well as interest rates increase will put more pressure on home owners and investors.

Demand will squeeze further, since financial sector started moving out of London.

Experts however do not predict market collapse due to existence of some deficit. Nevertheless, transactions volume and prices will continue falling and this will spread around the country. Expensive property sector will suffer the most.