London home prices falling at the fastest pace since 2009

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House prices in parts of London have fallen as much as 15 per cent over the past year, a property survey has revealed. Annually, property prices in London have fallen by 2.6 per cent, marking the biggest decline since August 2009.

In the City, average prices went down by 10.8 per cent, with the average cost of a home around £844,768. Meanwhile, the average Greater London house price was down 0.8 per cent on the month to £593,396.

The capital’s most expensive boroughs are also seeing a decline. In Southwark, the average price has dropped from £666,000 to £585,000 in 12 months, while prices have pegged back in Islington from £750,000 to £684,000.

Oliver Blake, managing director of Your Move and Reeds Rain estate agents, said: ‘The region plays an increasingly important part in the housing market of England and Wales as a whole. In our annual mix adjustment used to calculate the average house price for this report, the North West’s market share, based on transactions in the last year, sees the biggest increase of all regions, up 0.5 per cent. It now makes a greater contribution to the average house price than any region other than the South East.’

He also talked about how housing supply is still not meeting demand.

“The industry needs to work together to provide a long-term solution to increase movement within the market,” he said. “By building more homes and introducing more initiatives for each stage of the property lifecycle we should start to see more choice for first time buyers, second steppers and last-time buyers,” he added.

Meanwhile, the cost of homes in the North West, South West and Wales have swelled by over three per cent in the last year.