London house prices to fall with crash possible, poll finds

London house prices will fall this year and next and will drop sharply if the UK leaves the EU with no deal, a poll predicts.

A quarterly survey of housing market experts predicted London property prices would decline 1.6% in 2018 and 0.1% in 2019.

Reuters' poll of about 30 property specialists found the median expectation of a significant price correction in London in 2019 was 29%. The highest estimate was 75%. Responses to the prospect of a chaotic Brexit included "short-term fall", "damaging" and "disaster".

Uncertainty over Brexit is already weighing on London house prices. Valuations have soared as foreign buyers have invested funds in London's property market but concern about a no-deal Brexit has hit confidence.

"Central London is tanking because the traditional international buyers are staying away - and the quantum of buyers is falling. A disorderly Brexit will exacerbate this trend," Tony Williams at property consultancy Building Value told Reuters.

Asked to rate London house prices from one to 10 where 10 is extremely expensive, respondents' median score was nine compared with seven for the wider UK. The average asking price for a London home was £609,000 in August, more than double the national average price of £302,000. National prices are expected to increase 2% in 2018 and 2019, Reuters said.

"In the short term the additional uncertainty will disproportionately affect London, causing the value of some properties, particularly high value properties, to fall further," Ray Boulger at mortgage broker John Charcol said.