Estate agents report price falls in prime London property

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by Kay Murchie

Many reports have stated that property in prime Central London has been immune to property price falls.

However, Savills and Knight Frank, who both specialise in expensive property, have provided a gloomy review of property prices in London’s most sought-after areas.

According to Savills, in the first quarter of 2008, prime central London prices fell by 1.5%, this followed a slight fall of 2% in the last quarter of 2007.

However, Knight Frank said central London prices in the first quarter of 2008 remained the same while they increased 0.8% last month.

The spring is traditionally the busiest time of year for house-hunters, however, the figures show that the credit squeeze is affecting the market.

Furthermore, buyer numbers were down 30% in many offices over the May bank holiday weekend.

Winkworth estate agents in Ealing said it had five buyers over the bank holiday weekend compared with 32 during the same period in 2007.

A spokesperson for Capital Economics said the number of unsold properties on estate agents’ books in London is almost 90% higher than it was a year ago.

Buyer registrations, which normally increase in April and culminate in many viewings over the bank holiday weekend, failed to materialise, added the spokesperson.

The number of viewings required to achieve a sale increased to 14 and properties are now taking an average of over nine weeks to find a buyer, up from 6 weeks in the middle of last year, said the spokesperson.

According to business monitor company Debtwire, estate agencies are closing due to the housing slowdown and the number of agencies has dropped from 13,000 to 12,000 already this year.

As a result, 4,000 jobs have been lost. The company said the rate of closures had escalated and is currently 150 each week.

The research shows the impact the worldwide credit squeeze is having on the UK property market and the economy as a whole.