Twitter Facebook RSS FEEDS

London house prices fall 5.3%

Monday, 18 August 2008 12:41 AM

Property prices in the formerly prosperous London market have shown dramatic falls over the last month.

According to new research from Rightmove.co.uk, average prices in the capital fell by an average of 5.4 per cent in July, a trend which is beginning to undermine substantial gains made over the last year.

As a result of the recent falls, London now finds itself in negative year-on-year territory for asking prices, down 3.8 per cent. This brings it into line with the surrounding south-east, which saw prices down by 3.7 per cent.

"Londoners have so far been largely insulated from the price falls taking place elsewhere in the country," commented Miles Shipside, commercial director of Rightmove.

"However, sellers who choose to come to the market during the peak holiday season generally have a greater need to sell, and as a result properties coming onto the market in July were on average over £21,000 cheaper than last month."

Every borough in London saw a month-on-month fall in asking prices in July, and all but six now have prices lower than a year ago, finds Rightmove.

Among the worst fallers was Wandsworth, where an average property attracted an asking price of £521,653 a month ago. This has now fallen 7.9 per cent to £480,555, illustrating extreme volatility in the market.

Brent saw comparable falls of 7.5 per cent, Kingston-upon-Thames was down 7.2 per cent and Richmond-upon-Thames fell 6.8 per cent.

However, evidence suggests the areas proving to be most resistant follow the route of the Olympic-linked East London Line extension, which will open in 2010. New sellers coming to the market are still seeking prices higher than a year ago in Tower Hamlets, Hackney, Islington, and to a lesser extent, Southwark.

"Areas that are about to benefit from improved transport links appear to be avoiding the worst of the storm that is setting in elsewhere in the capital," explained Mr Shipside.

"Perhaps those looking for ongoing price growth, or some insulation from the worst of the falls, should take up transport detective work as a hobby."

Chris O'Toole

Related stories

New consumer sentiment index says expectations of house price growth over next 12 months at highest level for over a year. Image: Thinkstock

House prices fall again but expectations higher

New consumer sentiment index says expectations of house price growth over next 12 months at highest level for over a year.

The house price gap between London and the rest of the country is widening.

London house prices detach from rest of country

Prices in North East fall below £100,000 while average home in capital worth £345,000, says Land Registry.
Firstrung expects price drops

House prices 'to fall 10%'

The mortgage drought could mean further house price reductions, according to one organisation.

 Houses in London

Foreign buyers boost central London house prices

London's prime residential property market has grown thanks to increased investment from Middle Eastern and Russian buyers.
Most predictions were for a rent rise in 2012, particularly in London. Image:Thinkstock

Rents fall at top end of London market

Small fall at end of 2011 set to be followed by further falls in the Spring, says Cluttons.

London has bucked the trend of falling house prices

London bucks trend of falling house prices

Northern Ireland sees the biggest fall in house prices in the year to September, says DCLG index.

In a volatile year the Halifax house price index has recorded five rises, four falls and one month where prices stayed the same.

Fall in house prices slows after rise in October

Average price of a home up 1.2 per cent last month and annual rate of decline slows to -1.8 per cent, says Halifax.

 UK house prices down 5.3%

UK house prices down 5.3%

UK house prices down 5.3%
House prices up 0.1 per cent in September, says Nationwide. Image: Thinkstock

House prices mark time in September

Nationwide says average UK prices little changed on a year ago and a month ago.

 Row of London townhouses

Halifax reports 2.4% YoY fall in UK house prices

Property values saw a slight increase between December and January, but are still down compared with the same period last year.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Beds Direct

Beds Direct Logo
Whether you've just moved into a property and need to furnish it or just fancy having something new to sleep on, Beds Direct offer you a wide array of beds to order online or via the telephone.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Propertywide

Propertywide Logo
Propertywide.co.uk is Countrywide plc's dedicated property website. Created to provide online access to all our estate agency, lettings and property related services, Propertywide.co.uk has been designed with the consumer at heart.

The 21st Century Radiator Company

The 21st Century Radiator Company Logo
Welcome to 21st Century Radiator Company. We supply a stunning range of traditional reproduction high quality cast-iron radiators and cast-iron baths. All our cast-iron radiators and cast-iron baths are brand new, fully tested and guaranteed for ten years.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Designer taps can complete the look of your bathroom

When redesigning your bathroom, the first thing you're likely to pay attention to is what suite to choose. However, before you finish redecorating, think about the smaller features; after all, something like which taps you choose can complete your bathroom design.

Great tips for keeping brass door handles in top condition

Having brass door handles in your home can quickly give your place a sense of glamour and finesse. However, it is vital you put in the effort to ensure your brass fittings stay looking good. By following the tips below, you can be confident your handles will always be in peak condition.

What type of storage is best for small kitchens?

If you have a small kitchen you may well look enviously at the space and amount of storage in the country-style rooms that are beloved by property programmes on television. There may not be much you can do about the size of your room, but there are steps you can take to ensure the space is utilised as efficiently as possible.