London house prices “to drop 3%” in 2015

What goes up…

Is this the beginning of the end for the property price explosion we’ve seen in the capital in the last few years?

Well, it’s not looking catastrophic, but the Centre for Economics and Business Research (CEBR) is forecasting that London house prices will drop by 3.3% this year.

It’s also predicting a fall of 0.6% across the country as a whole.

If CEBR are correct, 2015 will see the first decline in London prices for more than five years.

CEBR said its forecasts are based on indicators such as lower numbers of new buyer inquiries and properties taking longer to sell. (Even as first-time buyers hit a seven-year high across the UK in 2014.)

CEBR said: “The new stamp-duty system lowers tax payments for 98 per cent of home buyers and will give a slight boost to the market, but not enough to prevent a price drop.”

It added: “Even after May, when the elements of political and taxation uncertainty are less of a factor, the CEBR does not expect a strong post-election bounce back.”

CEBR’s forecast follows a growing cacophony of voices and stats suggesting a slowdown in the London property market.