London property sales slide 35%

New research by Hamptons International has revealed that the rate at which property for sale in London is going under the hammer has fallen by over a third.

According to the Estate Agents, transaction levels in the London property market have tailed off to a mere 65 per cent of the level seen in the second quarter of 2007.

And the stifling atmosphere in the market is being reflected in stagnating property prices, with the average value of houses for sale in London rising a mere 0.1 per cent over the past three months.

Among some of the worst-hit areas are many of London's most sought-after locations - areas which analysts say bore the brunt of much of the speculative house price growth that has weakened the market.

Chelsea and Fulham in particular are believed to have suffered some of the largest price reductions - falling 2.8 per cent and two per cent respectively - with many would-be buyers now looking to rent instead.

"The latest research reveals average prices in a number of London locations have corrected from the peaks seen in early 2007," commented Hamptons spokesman Rob Bruce.

"As a result, there is still movement if consumers take stock of changing market conditions and adjust prices accordingly."

Published 2nd June, 2008

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