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London house prices fall

London house prices fall

Category: Mortgages

Updated: 30/07/2012
First Published: 30/07/2012

MONEYFACTS ARCHIVE
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A growing number of postcodes in London have reported falls in house prices over the past month, despite remaining the most expensive place in the UK to buy a property.

The capital was the only region in the UK to experience a price increase in July; however, many outer London boroughs have reported low demand from buyers, affecting house prices. This is mainly believed to be due to affordability pressures and weakened sentiment in the economy.

Overall, house prices in the UK fell by 0.1% over the past year, its first decline in seven months.

Richard Donnell, director of research at Hometrack, who compiled the research, said: "House prices are particularly sensitive to changes in levels of demand and during the first four months of the year there was a strong rise in the number of buyers registering with agents, especially in Southern England, and with this came price rises.

"Now, however, demand is starting to falter across the board. The seasonal downturn has begun and this is combined with a weakening economy is impacting on demand for housing."

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