London house prices are falling for a third month in a row, according to a major property site, the latest sign of a groundswell of sellers flooding the market.
New selling prices dropped 5.9 per cent between July and August, according to Rightmove. Although prices are still 10.3 per cent higher than in the same period last year, the pace has slowed from a 16.3 per cent increase in May.
The firm says the number of sellers is up by one-fifth on the same period last year, with a growing number of people looking to cash in on the rising value of their property.
Recently, estate agents Haart reported that the number of people looking to sell their homes was up by one-third in the past year. Halifax also suggested that 57 per cent of owners now felt the year ahead would be a good time to sell property.
In comparison, rising prices are increasingly making it difficult for prospective owners to find deposits and raise finance.
"Stretched affordability in the boom locations and a jump in the number of properties coming to market have coincided with the traditional London summer slow down," said Miles Shipside of Right move.
The group is also reporting that some of the capital's most expensive boroughs are experiencing the sharpest slowdown. Four of the seven areas where prices fell at the quickest rate were the capital city's most expensive areas.
"Top-end sellers are very much discretionary ones, so can delay marketing until a more active time of year. That tends to depress property prices more in the higher-priced boroughs, with those that need to sell in summer pricing lower to attract holiday-distracted buyers.
The surge in prices seen in the more central locations has now run out of steam, and indeed the most expensive borough of Kensington and Chelsea is down by 1.4 per cent on August 2013." added Shipside.