Prices fall in London according to National Homebuyers

Property prices in London fell in October, sending shockwaves through the housing market.

[UKPRwire, Tue Dec 04 2007] The capital city is renowned for its strong price growth but the latest Land Registry House Price Index reveals a 0.6 per cent month-on-month fall.

It is bad news if you are looking for someone to buy your property in London and the rest of England and Wales also performed badly.

Overall, prices rose by just 0.1 per cent, showing that the market is slowly grinding to a halt.

London was the worst performing region but Yorkshire & Humber (-0.5 per cent), the south-west (-0.3 per cent) and the East Midlands (-0.1 per cent) also saw prices fall.

Howard Archer from Global Insight said that a major price fall may be on the cards.

"A sharp housing market correction could also be triggered if both sellers and buyers start expecting prices to fall sharply," he said.

"This could prompt a flood of sellers putting their houses on to the market to try and sell their houses before prices fall markedly, while at the same time prospective buyers hold off in the expectation that prices will fall.

"Under such circumstances, a growing surplus of supply over demand would undermine prices," added Mr Archer.

Fast property sale expert Julian King comments, "It's not just London that is facing fast property sale problems.

"Property prices across the whole of the UK have been unnaturally high for some time, this is in the process of correcting itself. However, linked with the effects of the recent credit crisis the ability to sell is reduced as fewer buyers are entering the market.

"People needing a quick house sale because they are facing financial difficulty, repossession or find that they need to fund health care will discover selling a property on the 'open market' does not afford them the ability to achieve a quick sale.

"Distressed or concerned homeowners are advised to seek alternative methods of selling their property in order to achieve a sale. For instance, in selling to National Homebuyers the vendor can complete at a timescale of their chosing, no Hips pack is required and it can even be arranged for the homeowner to sell their property, but remain living there as a tenant".

Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm. The company guarantees a quick 'cash for house' offer for vendors who need a quick sale. The company is also one of the UK's leading providers of Sell and Rent Back solutions.

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