Residential asking prices in London fell some four percent to average £464,398 (S$919,090) this month, the biggest decline for a December in five years, according to property website Rightmove plc.
This was attributed to seasonal factors and an upsurge in supply. Average prices in England and Wales fell 3.3 percent.
The decline in London could signal a “less frothy” housing market next year, said the portal.
Meanwhile, home buyers in the UK are hesitant to make purchases considering the mortgage lending squeeze and weak economic recovery.
Miles Shipside, Director at Rightmove, predicted a “marginal but encouraging boost to mortgage lending, giving the wider market a generally more positive outlook next year” that will appeal to “frustrated first-time buyers”.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
Experts optimistic about Malaysia property market
HK risks property price slump: IMF