Central London prices ‘fall in the quarter’
House prices are continuing to fall in the central London area due to more widespread problems in the market, it has been revealed.
Knight Frank noted that homes now cost 3.1 per cent lower than they did there three months ago, which is the largest drop the company has ever recorded.
And the organisation added that homes are only 7.5 per cent more expensive than they were 12 months ago, the smallest yearly increase since November in 2005, something that might interest those looking for a mortgage.
Head of residential research at Knight Frank Liam Bailey said that the trends have taken place for a number of reasons.
"[It is a] result of the tightening market for mortgage finance and a crisis in confidence in the housing market," he commented.
He added that if the economy slows down in the next half of the year, then the problems are likely to be seen throughout 2008.
Nationwide revealed this week that in June house prices fell by an average of 0.9 per cent.
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