As the global economy continues to teeter towards another economic meltdown despite the saviour of the Euro,
news has emerged that the decline in house prices doubled its speed in October 2011 with prospective property buyers scared of the economic future and demand significantly hit. The results have shown that average house prices were down 0.2% in England and Wales throughout the month, doubling from the 0.1% decline seen in September which was consistent throughout the previous five months.
For the first time in a long time the period also saw house prices within the London area stagnate, halting seven straight months of rising house prices within the capital. Although prices did not decrease within the London area throughout the period, London’s property market has largely defied the UK housing slump this year as figures show the tide may be about to change and potentially affecting individuals seeking high net worth mortgages.
The report issued by Hometrack has stated that ‘While headline prices have held up across London over recent months, there are parts of the capital where prices have drifted downwards – south East London saw prices decrease 0.3% over October.’
It is where domestic demand has decreased the most where the fall in property prices has been seen the most, this can be contrasted to Central London where international demand for property has never been higher. As consumer concern continues to rise regarding both the domestic and international economy, a direct rise on house prices is starting to be seen.