Prices for prime central London property have fallen for the third consecutive month, says the latest study from estate agent Knight Frank, while figures from Nationwide’s monthly survey showed the largest year-on-year fall in prices since the property crash of the early 1990s.
[UKPRwire, Sat Aug 02 2008] Prices for prime central London property have fallen for the third consecutive month, says the latest study from estate agent Knight Frank, while figures from Nationwide’s monthly survey showed the largest year-on-year fall in prices since the property crash of the early 1990s.
In London prices fell an average 1.6% during July, following dips of 1.7% and 1.5% in June and May respectively. This brings annual growth to only 1.8%, in contrast to the price increase rate of 36.4% in July 2007.
The volume of sales has also declined dramatically, with almost 50% fewer homes being sold in prime central London than one year ago – a record low which reflects the shrinking mortgage market and tightened lending conditions by banks and building societies.
However, the capital is still performing better than elsewhere in the UK – Nationwide reported that prices across the country have fallen by 8.1% over the last twelve months, the biggest year-on-year fall since its house price index began in 1991.
The average price of a home in the UK now stands at £169,316, almost £15,000 less than one year ago and the lowest since August 2006.
Super-prime properties, worth more than £10 million, continue to buck the downward trend, with a price increase of 1% in July and annual growth of 16.7%. Houses in the northern part of prime central London also showed slight positive growth of 0.6% during July.
Amid the overall gloomy outlook there are some positive signs for the central London market. Properties are now on the market for less than 60 days before sale, which is the lowest level for six months, and viewings remain at historically high levels. Liam Bailey of Knight Frank said this shows that “the appetite for prime London property is not hugely dented – but rather that buyers are waiting for the market to stabilise before making a move”.
House prices will continue to fall until the mortgage market and overall economic outlook improve. “Vendors can still achieve a sale if they are prepared to adjust their asking price downwards to realistic market levels,” said Lawrence Smith of Decision Homebuyers, “otherwise they should be prepared for a long wait before prices begin to rise again.”
For press enquiries, please contact Phil Rendall on 020 7099 9026
Email: phil@dhbuyers.co.uk
Web: www.decisionhomebuyers.co.uk
News provided by Decision Homebuyers, a leading UK property company offering a quick and simple solution for selling your home, no matter what the condition.
Decision Homebuyers carries out daily surveys of the national media to provide up-to-date news and commentary on the UK property market.
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