Falls in London property prices are putting the brakes on the UK average as a whole, according to property database statistics provider, Hometrack. In particular, losses on top-end properties (£1m plus) have been blamed as November’s figures show house prices rising by just 0.2%, the sixth successive month they’ve been slowing since last May’s high of 2.6%
John Wrigglesworth, housing economist at Hometrack, said: ‘Although house price rises have continued to moderate following unsustainably high rises over the summer,’ he expected economic conditions to maintain a healthy demand in most parts of the country into 2003, with the exception of London.
Concerning London, he said: ‘High value properties (over £1m) are experiencing significant falls; typically down 5% over the last month.’ In central London and the City, prices have fallen by an average 1%, due, according to Hometrack, to City job losses. In west London, the fall was 0.5% and southwest London, 0.2%.
The biggest price rises this month have been in Suffolk, up by 0.7%, closely followed by North Wales, Teesside and Nottinghamshire, which all saw increases of 0.6%.
Hometrack’s national demand index for November, shows the number of properties for sale has remained broadly the same across the country, while the number of buyers has dropped by 2.3%. These figures have led Hometrack to halve its 2003 price inflation forecast for England and Wales to 4%, and from 7% to 5% in London and the South East.