Westminster property prices fall by more than £50,000 in December 2014

London property market fell this month

London property market fell this month - Credit: PA Wire/Press Association Images

Asking prices for property in Westminster fell by £50,327 between November and December, a 3 percent reduction, while Camden house prices dipped by £37,157 (3.5 pc) in the same period.

All boroughs saw a reduction in asking prices in the past month, with Hounslow experiencing the smallest decrease of 0.5 pc and Tower Hamlets figures down by 1 pc, according to this month’s Rightmove House Price Index.

New sellers in London have reduced asking prices by an average of 5.1 percent (equivalent to £30,474) in the past four weeks, while the average annual increase across the city is 11.1 pc.

Miles Shipside, Rightmove director and housing market analyst said: “This is a further sign of the cooling market in London, but also a bit of a quirk due to the time of year.

“Buyers should be on the lookout for sellers keen to tie up a quick sale as there will be some relative bargains to be had.

“This latest re-adjustment in prices also means there is more scope for some modest increases in 2015 on top of the heady rises seen in most months of this year.”

While there is nothing unusual in a Christmas slowdown, the UK has seen the largest ever monthly fall in the price of property coming to market a decrease of 3.3 pc reducing asking prices by nearly £9,000.

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The slower rise in house prices has encouraged positive consumer attitudes towards buying a property as predictions suggest that while the pace of growth will slow, values will still rise.

There was a 14 pc jump in the balance of people who thought that it was a good time to buy a property from 11 pc in September to 25 pc in November.

This appears to be particularly true in the capital, which saw the most extreme price rises in the past year.

Mr Shipside said: “There is some relief in prospect for many London buyers in 2015 after the heady rise of 11.1% in 2014.

“With the froth having gone off the market and more choice available, buyers have more negotiating power.

“The number of properties coming to market is up by nearly 17% compared to 2013 with sellers starting to price more sensibly as a result.

“This looks set to continue into next year, hence our forecast of a modest rise of between one and three percent overall.

“London remains a mix of many different markets however, so expect the usual wide variations from one locality to another.”