London house prices fall 5.3% in a month
After USA, Overheated real estate market in UK seems to be cooling off. A new Survey has confirmed gloomy housing market scenarios. The survey said that increasing number of people in UK are struggling to pay their mortgage repayments. Property transactions have fallen down drastically. Overall it's worrisome sign in the property market.
Londoners selling their homes have cut thousands of pounds off their asking prices as the downturn finally arrived in the capital.
Asking prices in London fell 5.3% in August, according to the Rightmove house price survey - equivalent to a £21,000 drop in a single month. Prices in some of the most sought-after suburbs are falling much lower. The average asking price in Wandsworth fell from £522,000 to £481,000 in a single month - or 7.9%. Homes in Brent, Kingston-upon-Thames, Richmond-upon-Thames and Greenwich were down more than 6.5%. Nationwide, asking prices tumbled by a record 2.3% in August. The property website said the decline took the average asking price to £229,816 in August, from £235,219 in July, the biggest fall on record for this month. Over the year prices are down 4.8%.
This drop in value is down to the lack of mortgages available on the market and the increasing number of unsold houses, according to the report.