London house prices join fall in rest of UK

Tim Wallace
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LONDON’S house prices slid in the month to the end of October, at last joining the falling trend across the rest of England and Wales, figures out yesterday from the Land Registry revealed.

Average prices in the capital fell 1.6 per cent from £345,870 to £340,308 in the month to October, up just 0.3 per cent from £339,263 this time last year.

Nationally, the average house cost £159,999, down 3.2 per cent from £165,246 in October 2010. On a monthly basis, prices are down 0.9 per cent on September’s £161,461.

Meanwhile, nationwide figures from Hometrack, also out yesterday, put the annual decline at 2.3 per cent – a slow and steady fall, as prices fell in each of the last 16 months.

“While demand may have fallen for the last four months in a row there has been no significant acceleration in price falls, which is at odds with consumer confidence,” said Hometrack’s Richard Donnell.

“Growth in supply has been slowing over recent months and together with low turnover this is supporting pricing levels.

“However, demand is likely to continue to fall in the run up to Christmas, keeping the supply/demand balance in negative territory. As a result we expect to see an acceleration in price falls in the months ahead,” he added.