The London Daily News

27 March, 2009 13:14 (GMT +00:00)

London property to reach nadir

Property News

Savilles the "upmarket" property consultant has forecast that the London property market will fall 30 per cent in total from its peak in September 2007. Analysts are saying that the fall in property prices has been 23.3 per cent prompting many to predict we are reaching the nadir at the end of this year.

Speaking to the FT Yolanda Barnes of Savilles said:

"We are not at the bottom of the market but we have seen the worst of the falls".

However another element that may see a further dip in the market is the "double-dip" effect of homeowners who are in serious problems paying their mortgage selling properties to avoid repossession. This element as yet has not been factored into the equation and may result into more supply in the market, causing more drops.

Euro-zone buyers and cash buyers in the UK are now the main buyers in the market in London, with many first time buyers unable to come up with the high deposit demands that have been enforced by the banks. One buyer from Cyprus George Ioanou who is looking for properties in Hampstead said:

"I have never seen a better time to buy in London I am looking at the £1 million plus bracket and am very surprised at the way the market in melting down. I am very lucky as I have scope negotiate and have cash to move quickly. Discounts are now coming to play even in Hampstead".

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