London and southern England are bearing the brunt of falls in house prices, which have dropped for the 10th month in a row, according to a survey published today.
Average prices in England and Wales declined by 4.4 per cent over the past year, with a fall of 1.2 per cent in July which put prices back to levels last seen in October 2006, according to Hometrack, a housing data analysis company.
Savills, the property agent, predicted that prime London properties would fall by 15 per cent this year and by 25 per cent by the end of 2009, with the worst hit areas expected to be parts of West London such as Kensington, Notting Hill and Holland Park.
Hometrack said there had been a 20 per cent drop in demand over the past three months, although this had not meant a big increase in the supply of houses for sale.
Richard Donnell, director of research, said: "Transaction volumes have been the greatest casualty of the decline in demand over the last 12 months - the vast majority of homeowners simply do not need to move."
London prices slid 5.1 per cent over the past year, the survey found, bringing them back to the level they were at in February 2007.
Savills said reduced earnings and job security expectations among City buyers had curtailed the demand for property in prime central London. Values are now 9 per cent lower than their peak in the late summer of 2007.
There was rental value growth of 1.4 per cent in the second quarter, however, with big differences across prime central London.
The east of the city including Canary Wharf fell 4.4 per cent in the period, while growth occurred in St John's Wood, Hampstead and Regents Park, which are less dependent on financial tenants.
Average prices in England and Wales declined by 4.4 per cent over the past year, with a fall of 1.2 per cent in July which put prices back to levels last seen in October 2006, according to Hometrack, a housing data analysis company.
Savills, the property agent, predicted that prime London properties would fall by 15 per cent this year and by 25 per cent by the end of 2009, with the worst hit areas expected to be parts of West London such as Kensington, Notting Hill and Holland Park.
Hometrack said there had been a 20 per cent drop in demand over the past three months, although this had not meant a big increase in the supply of houses for sale.
Richard Donnell, director of research, said: "Transaction volumes have been the greatest casualty of the decline in demand over the last 12 months - the vast majority of homeowners simply do not need to move."
London prices slid 5.1 per cent over the past year, the survey found, bringing them back to the level they were at in February 2007.
Savills said reduced earnings and job security expectations among City buyers had curtailed the demand for property in prime central London. Values are now 9 per cent lower than their peak in the late summer of 2007.
There was rental value growth of 1.4 per cent in the second quarter, however, with big differences across prime central London.
The east of the city including Canary Wharf fell 4.4 per cent in the period, while growth occurred in St John's Wood, Hampstead and Regents Park, which are less dependent on financial tenants.
