Top new London homes tumbling

Posted: 18 Nov 2008 11:10:52 GMT

New homes in London's most prime locations are now falling dramatically in price following a lack of demand from those working in the financial industry, it has been discovered.

Jones Lang LaSalle's London Prime New Homes index states that the third quarter of 2008 saw the value of such homes drop by 11.5 per cent, after they also fell six per cent in the second quarter of the year.

Neil Chegwidden, director and head of residential research at Jones Lang LaSalle, suggested that the falls in price were largely a result of a lack of transactions, leading to a lack of confidence.

"The main casualty across all housing markets is a decline [in] activity. This fact is proving problematic for a variety of residential participants as it is difficult to accurately gauge price levels in a thin market.

"Sellers are unwilling to drop their asking prices, especially as very few are forced sellers, while buyers are set on picking up a bargain and a notable price reduction."

Estate agents fees are likely to keep property prices somewhat higher than directly-sold homes, and so bargain hunters are being advised to make the most of alternative methods of purchasing property this year and next.


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