London house prices stall in June

Posted: 10 Jul 2006 11:33:03 GMT

After months of solid growth, house prices in London fell by one per cent in June, according to a new report.

With activity levels also falling by four per cent in the month, research from haart estate agents indicates that the market may well be stuttering.

Prospective property buyers in the capital will be pleased to hear that the average house price is once more lower than £250,000 after June's fall.

On the other hand, prices are still up nine per cent from this time last year and haart's chief executive Paul Smith expects activity levels to rise again before long.

"It is likely that these reduced levels of activity are partially due to a preoccupation with the World Cup which has resulted in people putting aside important decision-making until the tournament is over," he said.

"However, we are expecting activity to bounce back again over the course of July to an unusually buoyant market in the summer as activity resumes after the World Cup. We could in fact see a ten per cent increase in transactions," he suggested.

Mr Smith expects house prices in the remainder of the year to level out a little, which should provide a boost to first-time buyers who have seen their share of the market fall in recent months.


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