London Property Market Posts a Fall in Asking Prices for August
The capital city has seen a lowering of its property prices, according to Rightmove. London went through a 3.4% fall in asking prices of property since July, which represents the largest drop in prices in twelve months. The reason for the drop has been described by a lack of consumer confidence and the possibility in the further degradation of the European debt crisis.
Further reasons for lower asking prices continue to be a struggling labor market combined with possible turmoil in the financial markets.
Rightmove commented on the asking price downturn, saying: “Prices often fall back at this time of year, but the renewed turmoil in global financial markets may be starting to hit home with London buyers who have thus far been insulated from the worst of the downturn.”
August was not only a month for London to lower its asking prices. Rightmove tracks the property data within ten regions of England and Wales. Eight of those ten posted declines in August. All 32 boroughs in London were victim to falling prices. Additionally, Westminster and the Kensington and Chelsea district both had declines of almost 3%.
Commercial director of Rightmove, Miles Shipside, commented on the London market, saying: “With both buyers and sellers staying away from the market unless they are strongly motivated to move, we expect prices to stabilize with continuing subdued transaction volumes. It remains to be seen whether the latest round of global financial jitters will affect the London market over the next few months.”