London House Prices Fall by 5.3%

The almost unthinkable a year ago has now happened with London house prices falling by 5.3% in the last month, according to the figures.

Like many other parts of the country, the capital has even found itself falling into ‘negative equity’ territory for asking prices year-on-year.

Meanwhile, it has been predicted that hundreds of thousands of people could lose their jobs over the next two to three years and that unemployment levels may top two million.

After months where asking prices moved down by much less than the actual prices agreed on property deals, householders slashed the asking price of the average British home by 2.3 per cent last month – a drop of £5,403. In London, the discounting has become even more marked, with asking prices down by 5.3 per cent last month alone, representing a reduction of £21,000 in the four weeks to 9 August, said Rightmove in its latest survey of the housing market.