Central London weathers price falls
House prices may have fallen in the last month, but central London remains unaffected.
A report from Primelocation.com claims that overall, London properties have fallen by one per cent as the finance industry suffers. But more expensive homes in the middle of the capital are still bucking the trend.
Primelocation.com’s head of insight Andrew Smith said: “Prices across the three main sectors of the prime market continued their downward trajectory in October.
“Some areas of the market remain unaffected – notably Central London sales and the prime country market in the West Midlands and Wales – but in general, the prime sector is now mirroring the steep declines evident in the wider market.�
The situation according to Primelocation.com has created a buyers’ market, with sellers being forced to offer good deals.
Mr Smith said: “With the financial sector shedding jobs, and finance still tight, buyers in London’s prime locations are understandably thin on the ground.
“Stock levels, meanwhile, remain high and agents report that only vendors who are willing to price competitively are managing to achieve sales.�
Sales values have fallen by 1.01 per cent for the fifth successive month.
However, prices in central London are still 9.37 per cent higher than in October 2007.
Mr Smith said: “Any thoughts that the wider economy could remain insulated from the credit crunch were dispelled this week.
“The Bank of England has predicted a marked deterioration in the outlook for domestic and global economic activity, employment levels have fallen to their lowest level in 11 years, and according to a recent report from the Centre for Economics and Business Research, London’s financial district, which is a major influence on the prime housing market, will see employment fall to around 291,000 during from a peak of 353,000 last year.�
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