Londoners hit as house prices fall

first_img THE UK HOUSING market dropped back for the third month in a row in September, with London prices now also moving into the red. Figures from Rightmove show that average asking prices across the UK dropped by 1.1 per cent to £229,767 compared with the previous month.Prices have now fallen back by a total 3.4 per cent in the last three months, half way towards wiping out gains made in the first six months of the year. Asking prices are up by just 2.6 per cent over the past 12 months, a decline in real terms.In London, the average asking price fell by 1.5 per cent to £390,768 this month. Prices are up just 2.1 per cent over the past year, a cut after adjusting for consumer price inflation.The data comes after bleak figures which showed that retail sales unexpectedly dropped 0.5 per cent in August – triggering fears that high inflation, weak earnings growth, austerity measures and a looming VAT hike were threatening to derail a consumer recovery. Most economists believe that economic growth will be weaker – albeit still positive – in the third and fourth quarter of 2010.The biggest London fall was in Hammersmith and Fulham, where prices dived by 8.3 per cent, while Tower Hamlets performed best, with a rise of three per cent.Rightmove director Miles Shipside said: “The ‘double-dippers’ will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce. They can cite tough competition amongst sellers and agents struggling to find buyers for their record levels of unsold stock.”But he emphasised that the data was not exclusively negative and that the figures could be a blip, with a recovery ahead. Shipside said: “Those seeing this as a short term autumn blip rather than the onset of a serious double-dip, will point out tentative signs of a reduction in new property coming to the market. “This has resulted in average unsold stock per agent stabilising after six consecutive monthly rises.”The lack of new housing stock – the lowest since April at 26,087 a week – is likely to increase competition in the run up to Christmas.Rightmove said the reduced number of sellers, in what is traditionally a busy time of year, is probably down to finances and sentiment being at a low ebb. Conversely, interest rates are low enough that home owners at financial breaking point have been able to avoid forced sales.Average UK asking prices DOWN 1.1% to £229,767 in SeptemberAverage UK asking prices DOWN 3.4% in past three monthsLondon asking prices DOWN 1.5% to £390,768 in September Show Comments ▼ KCS-content Sunday 19 September 2010 11:08 pm Londoners hit as house prices fall Sharecenter_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.com whatsapp More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.com Tags: NULLlast_img

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