4 August 2010

The latest real estate index reveals that prime London property prices have finally started falling back after a 15 month surge.

Experts had predicted that the start of the second half of the year would lead to decreasing prices in the UK and the Knight Frank Prime Central London Index demonstrates this forecast. They claim that prices for ideal London property showed the first decline since March 2009, falling in July by 0.5%.

Liam Bailey, Knight Frank’s head of residential research, stated: “The slowdown in the London market has been anticipated for several months, the bounce in pricing on the back of low interest rates and weak Sterling had driven prices close to peak levels and in some cases above these levels.”

One of the biggest problems facing vendors in the capital now is over ambitious pricing, with asking prices up to 10% higher than buyers’ expectations.  Movewithus director, Robin King commented: “With ever changing house prices in this fluctuating market, this report shows how important it is to get an accurate valuation on your home”

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