House prices drop throughout London

Julian Harris
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LONDON’S house prices have collapsed in August, yet a leading analyst has said that global financial worries will not impact the housing market across the UK.

Asking prices were down in all 32 London boroughs this month, plummeting 3.4 per cent across the capital, according to the Rightmove index released this morning.

Prices in London had been defying the UK-wide slump this year, yet this index shows they are “now falling back more sharply than in the rest of the country”.

“The renewed turmoil in global financial markets may be starting to hit home with London buyers who have thus far been insulated from the worst of the downturn,” the report said – yet Rightmove insisted that financial worries will not hit prices across the country as a whole.

Low transaction levels mean that prices in the UK are already “bumping along the bottom”, Rightmove said.

Asking prices for the UK as a whole were down 2.1 per cent in August.