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News: London prices on the slide

Thu, 29 Nov 07

London house prices experienced a greater fall than any other region in October, according to the latest monthly figures from Land Registry...

October’s House Price Index shows that prices in London fell 0.6 per cent, while the market in England and Wales as a whole demonstrated a slight increase of 0.1 per cent.

The average house price for England and Wales now stands at £184,346; in London the figure is £351,039.

Region

Monthly change (%)

Annual change (%)

Average price (£)

Wales

2.0

7.3

143,649

East

0.9

8.5

194,614

West Midlands

0.8

5.8

155,046

South East

0.7

10.4

230,976

North East

0.4

5.7

130,978

North West

0.0

6.6

137,099

East Midlands

-0.1

5.9

146,874

South West

-0.3

7.2

195,637

Yorkshire & The Humber

-0.5

6.5

146,231

London

-0.6

14.7

351,039

Ed Stansfield, property economist at consultancy Capital Economics, commented: ‘The downturn in the London market is not necessarily the start of a slowdown.

"The fall in London house prices reported in October did not even reverse the previous month's rise, and could yet turn out to be simply noise rather than a new trend," he said.

"Even so, it will doubtless fuel concerns over the housing market outlook, since house price developments in the capital often act as a lead indicator for the wider market."

Howard Archer, chief UK economist at Global Insight, added: ‘there could be more trouble in store in the capital. House prices could be markedly hit by City job losses and reduced bonuses, particularly if the credit crunch and financial market turmoil proves extended, which seems increasingly likely’.

Average prices by property type (England and Wales)

October 2007

October 2006

Difference (%)

Detached

£278,018

£260,267

6.8

Semi-detached

£172,655

£161,156

7.1

Terraced

£144,369

£132,778

8.7

Flat/maisonette

£173,652

£159,838

8.6

All

£184,346

£170,498

8.1

For more information and to view the latest statistical release visit www.landregistry.gov.uk/houseprices/

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