photo credit: Mr Phil Price
Property investment homes in London could be falling in price faster than ever, according to a survey by a leading consultancy.
Knight Frank said prime spots in the UK capital dropped in price by 3.9 per cent in October, the fastest fall on record.
All areas of London have now seen falling prices, according to the firm, with houses down 3.8 per cent and flats falling by four per cent.
Most sellers were holding prices during the summer, but this trend appears to have reversed since the recent crisis in global financial markets.
Knight Frank’s head of residential research, Liam Bailey, said:
“A four per cent fall in price in a month is suddenly very noticeable – equating to £160,000 on a £4 million house, or more than £5,000 a day.
“We ought not to be too surprised, at the height of the recent boom prices were rising by the same rate, so there is a symmetry of sorts to the current pattern of price movements.”
He said the “bright side” to the falls was the fact that they showed sellers are now more realistic.
Knight Frank figures also show sales actually rose slightly in September and October as prices fell.
Last week the Royal Institution of Chartered Surveyors also said prices were dropping across the UK, with some homes down by 13 per cent in some areas.
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