prime London property prices fall for the second consecutive month

Average prime London property prices fell for the second month in succession in September 2007, down 1.3% on August. The drop in prices equates to the average home losing over £14,000 in value in just one month. A notable feature of the market in September has been the sharp increase in property coming to market, with the number of properties for sale up 11.8% on last month and up 30.3% on last year.

Even areas that have achieved the highest price rises over the last year have begun to show a gradual decline since August. Prices in Chelsea (down 1.4%), Kensington (down 2.1%) and Holland Park and Notting Hill (down 4.4%) have all reported a monthly decline in prices, as have North London areas, such as Camden (down 3.3%) and Highgate (down 7.7%).

Increased buyer caution is creeping into the market, with buyers concerned about investing in property when prices are relatively high. The latest data from the Royal Institution of Chartered Surveyors (RICS) reports that new buyer enquiries have dropped for the tenth consecutive month. This, coupled with the increase in property volumes, has led to the decline in the value of asking prices over the last two months.

Read more about the prime London property market.