Family home loses 40% in value in just 4 months

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by Kay Murchie

A six-bedroom Victorian family home has seen its value fall by 40% in just 4 months.

The home, which is in the desirable area of Bedford Park, west London, is believed to be the capital’s steepest property reduction.

The property was put up for sale in March for £3.2 million, since that time buyers interest has dwindled due to the fall in property prices and the lack of mortgages available.

As a result of the property slowdown, the seller was forced to slash the price to £2.6 million in April, then a further reduction to £2.25 million in May and the home is now on the market at £1.9 million - a total reduction of £1.3 million.

The 3,135 sq ft house has been modernised and has a new roof, plumbing, wiring and bathrooms to boost its marketability. The current owners have modernised the property with a view to selling.

According to estate agents, the home had initially been overpriced, in spite of being in a sought-after location.

A spokesperson for estate agents, Faron Sutaria, who are marketing the home, said it should sell quite quickly now but it was overpriced to begin with. When it was on the market at £3.2 million, there were lots of viewings but no offers.

Many other properties in the capital have seen 20% to 30% trimmed from their original asking prices after a lack of interest.

The figures suggest how the credit squeeze and a shortage of buyers has pushed down asking prices.

A recent report by property website, Rightmove, revealed that there are currently over one million homes on the market in England and Wales.

Estate agents have record numbers of unsold homes on their books with an average of 75 homes for sale at each branch.

It is estimated that there are approximately 15 properties for sale for every buyer.

It appears the only part of the market which is immune to the slowdown is the very top of the central London market, which is monopolised by affluent investors from overseas.

Many property analysts have become increasingly pessimistic about the future of the property market. Some are predicting falls of up to 25% over the next 2 to 3 years.