House prices down in London

Wednesday, 26 September 2007 12:00 AM

The average house price in London fell by 1.96 per cent in August, according to estate agent group Team Association.

The fall was part of a wider 0.4 per cent fall across the country during the month according to the organisation.

However, it is London which has attracted the most attention.

"Greater London has taken the biggest price drop, which indicates interest rates might have finally started to have an impact on this region," said Alan Kirkman, director of communications at Team.

"Also, big City players may also be feeling the repercussions of the worldwide stock market fluctuations, which undoubtedly will have an effect on their spending power."

The West Midlands and south-west also saw a small fall in prices, with the average property costing 0.76 and 0.34 per cent less in each area respectively.

"Prices nationally have held up fairy well under the current market circumstances, with regards to the current economic uncertainty and the introduction of the second phase of Hips," continued Mr Kirkman.

There has, however, been a slight increase in the number of properties sold, with a 2.6 per cent increase registered between July and August.

Annually, a 17.9 per cent fall in the number of houses sold was recorded.

The supply of property has also fallen across the country, down by six per cent from July 2007 and by 9.5 per cent from August 2006.

"It's clear to see the property market is delicate at present with prices dipping and the desire to move waning due to the unsettling effects of Hips.

"The economic fluctuations are also having a tightening effect on consumers spending power and with the recent bank changes this is likely to continue.

"However, it is my belief that the market will soon recover and autumn will be a healthy month providing no further interest rates take place," concluded Mr Kirkman.

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