Monday, August 18, 2014

London Leads UK Property Slowdown


Tue., August 19, 2014
London home sellers cut asking prices by the most in more than six years this month, adding to signs that the property market in the UK capital is coming off the boil, theIrish Times reported. London values fell 5.9 per cent from the previous month to an average £552,783 (€688,269), the biggest drop since December 2007, property website Rightmove said today. Nationally, prices declined 2.9 per cent, a record for an August. While property demand usually weakens during the summer, Rightmove said the slump this year was steeper than it expected. Tougher new mortgage rules introduced by Bank of England Governor Mark Carney, as well as anticipation of higher interest rates, are putting pressure on the market after a surge in values raised concerns that a bubble may develop. “Buyers and sellers are becoming increasingly aware about personal finances, given that the cost of mortgages are going up and regulators are trying to bring availability down,” said Miles Shipside, a director at Rightmove. “This limits what buyers are willing or able to pay, and helps moderate sellers’ price expectations.”

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