London house prices fall as slowdown hits by Finance News Bulletin

Published: 03/12/07

House prices inched in front by just 01% in October – with the cost of the average home in London plummeting by more than £2,000, according to the ground RegistryBritish mortgage lenders desire us to remove our new house price crash calculator Read more

The Editor's BlogThe small rise in the cost of a home exposed by the latest house price directory from the Land Registry has been seen as further proof that the property market has entered a slowdownOfficial figures show the price of the average home in England and Wales having reached £184,346 and annual possessions inflation running at 8

1%The capital saying the biggest fall in house prices over the month, with the cost of a home plummeting 06%, or £2,100The 0

1% journal rise in the cost of a home in England and Wales during October was noticeably below the 07% standard over the previous 12 months, and led to yearly inflation slipping back from the 87% recorded in SeptemberA combination of overstretched affordability, fears over the physical condition of the economy and tougher borrowing circumstances introduced by lenders have been cited as the reasons behind the property slowdown

The Land Registry data supports information previously released by other house price information including the Halifax index and Hometrack index, which also showed prices lessening in OctoberHoward Archer, chief UK economist, at analysts Global Insight, said: 'proof is mounting that the housing market is now cooling considerably in the face of tighter lending practices and the heightened affordability force on house buyers coming from higher interest rates, elevated house prices and subdued real disposable income growth'These factors are expected to more and more bite over the coming months In adding, house prices in London could be markedly hit by City work losses and reduced bonuses, particularly if the credit crunch and financial marketplace turmoil proves comprehensive - which seems increasingly likely

'We expect annual house price inflation to fall back noticeably over the next few months Further out, we think it is most likely that home prices will essentially flatline for an extended period'The Land Registry supposed that October saw the first time in ten months the journal rate of price change for London dropped below the monthly speed for England and Wales as a whole However as this was on the back of a 12 month period of strong enlargement, the annual change in the capital's home prices remains high at 14

7%London's average home price for October 2007 stands at £351,039 whereas the average price for England and Wales is £184,346The area with the main price rise in October was Wales which saw a 2% monthly increase to an standard price of £143,649Where London goes, the rest of the country follows put in this to the 1

34 trillion money owing problem, the high oil price and the 25 billion NR black gap, I'd say Mr Brown has a problem Mr Bean More like Mr Has Beanpossessions prices in London are ridiculous

For the history year it seems that land agents have continually elevated prices beyond the reach of us first occasion buyers I have been trying to buy a level in SW London for months but have found that vendors are still refusing to accept any offer other than the asking cost It is a relief to me (and many other first time buyers) that the London market is now changingSelect a loan word 12 months (1 year) 24 months (2 existence 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 years) 120 months (10 years)Please choose a type of insurance Life insurance Home and inside Car Breakdown services physical condition - medical physical condition - dental Travel Pet -

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