Tuesday 2 December 2008

UK Property Prices Tumble

A recent report by Knight Frank has said that prime residential prices in central London fell by 3.6% in November, the second largest fall on record after the decline of 3.9% recorded in October. This latest decline in prices leaves them 14.1% lower than this time last year, having fallen by 9.3% over the last three months alone.

According to the report all areas and property types have been hit by falling prices but houses are depreciating at a faster rate than flats. 

On the upside for agents in the UK the weak pound is beginning to re-stimulate foreign interest in prime London property, an interest which had fallen off greatly over the past year.

Liam Bailey of Knight Frank commented: “These dramatic falls may be painful to vendors, but prime London property is increasingly looking like very good value, particularly to foreign buyers who also benefit from the weak pound. Indeed, a fall of 15% may translate to a fall of as much as 35% to someone watching the market from the USA, as the pound has fallen by 20% against the dollar since the beginning of the year. There has been a increase in interest from such buyers over the past few weeks, which has not yet been translated into activity."

You'll find the full story, with a month by month price fall breakdown, on our website here

There is also an interesting piece in London's Evening Standard on the 'Return of the £100,000 home." It is a run down of prices at a Lodon auction house where "18 lots changed hands for £100,000 or less, an extraordinary total given that only 42 homes were sold in the whole of London in this price bracket in August."

You'll find the full article here

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