London prices fall as British property market cools
Decline for second straight month in British capital adds to signs that the property market is losing steam as a result of cooling measures
Asking prices for London property have fallen for a second consecutive month as a rise in the number of homes for sale softened the market for sellers, Rightmove said.
Prices sought in the British capital fell 0.4 per cent from last month to an average of £587,174 (HK$7.77 million), the property website operator said.
Across England and Wales, prices fell 0.8 per cent, their first decline since December last year.
The report adds to signs the property market is losing steam, after the Bank of England said it posed the greatest risk to the economic recovery. Financial stability officials set a cap on loan-income ratios last month to prevent surging prices leading to an excessive build-up of debt.
The declines were "a sign of some sellers asking beyond what buyers and lenders judge to be affordable or fair value", said Miles Shipside, a director at Rightmove. "Market conditions still compare favourably with this time last year, with growth in both the economy and employment, plus a comparative thaw in mortgage availability."
There seem to be more downside than upside risks to London housing
The number of properties for sale in London is 15 per cent higher this year than a year ago, according to Rightmove. New sellers rose 28 per cent.
