UK house prices have fallen for the first time in seven months as the London market begins to slow down, research has shown. The capital, which has been a key driving force behind the nation’s property sector, recorded a 0.1% rise in prices, which is slower than previous months. This was because an increasing number of areas in London have started recording house price falls – although more parts of the city have seen rises overall.
Across the country the research, completed by Hometrack, reveals that although more properties are going on the market, there are fewer potential buyers.
Results showed that there has been a 5.2% surge in properties going up for sale over the last quarter, while there has been a 2.2% decrease in prospective buyers registering with estate agents during the same period.
Since 2007, Southwest London residential properties have experienced price growth of up to 11.3% while North London property prices have rose to up to 9.3%. Kensington and Chelsea have shown a property price increase averaging to 42% over the last five years. Ultra-prime London properties have increased by 29.2% in value and have shown a good record increase of 4.4% in just the first three months of 2012.
Analysts have predicted that the rapid seasonal slowdown will continue, meaning prices are likely to fall further over the next few months into autumn.