House prices in the capital are dropping at a faster pace than any time since the slump caused by the Lehman Brothers collapse seven years ago.
Data from the Office of National Statistics has revealed that the average property price fell by £9000 to £490,000 last month, arriving at the lowest level in two years.
The evidence highlights a dramatic fall since last August, when prices peaked at £514,000.
This news coincides with inflation being declared at zero – a result of supermarket price wars and the falling cost of clothing and gas.
This welcome respite for family budgets will be sweeter for those trying to get into the housing market. Stephen Smith, director of Legal & General mortgage club and housing says,
‘House price growth has slowed since the end of 2014. Although it might not seem like it, this is actually good news for the housing market, as price rises that are too sharp can prevent people from getting on the property ladder.’
Whilst London prices are still up 9.4 percent since last year, this latest data shows a dramatic slowing since the annual rate reached a peak of 20.1 percent last May.
If prices continue to drop at this rate, London will soon be in negative year-on-year territory.