Bloomberg reports that London home sellers cut £17,000, off their asking prices on average in August, wiping out gains recorded in the first half of the year, Rightmove Plc said.
Asking prices in the capital fell 4.1 percent on the month to an average 405,058 pounds, the operator of the nation’s biggest property website said in a report today. The drop is the biggest in two years and returns values to levels seen in January. Prices across England and Wales fell 1.7 percent.
Reports from Nationwide Building Society and Halifax also signal that the U.K.’s housing recovery is faltering, while Rightmove said a squeeze in the availability of credit may limit price gains. Bank of England Governor Mervyn King said Aug. 11 the banking system is still “badly damaged” and that is keeping lenders’ funding costs high.
“Mortgage levels have a lender-imposed ceiling,” Miles Shipside, commercial director at Rightmove, said in the statement. “If you can’t raise a beefy deposit, cheaper property prices won’t help you much.”
Rightmove’s data show the London boroughs of Wandsworth and Brent led declines in the capital, falling 6.2 percent. Newham was the best performer, slipping 1.2 percent, while the Kensington and Chelsea district fell 1.7 percent.
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