Prices fell 0.2 per cent, reversing a 0.9 per cent increase in the previous quarter, as demand for property weakened and the number of properties offered for sale over the summer increased. House prices in prime central London locations remained flat while in non-prime city locations house prices fell.
The fall is the first since March 2009 and although prices have risen by 5.9 per cent on last year they are still 11.1 per cent below their September 2007 peak.
Andrew Stanford, head of Cluttons’ residential professional division said prime located properties were holding their value to a certain extent, although potential buyers had become more discerning with demand focused on properties in the mid-market range up to £2.5m
“Only properties in prime locations or those with a unique selling angle were receiving real interest from potential purchasers,” he added.