House prices down two per cent in a year

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Figures published today show the average house in the capital is worth almost two per cent - about £5,500 - less than a year ago.

The figures, from Hometrack, also show prices fell by almost half a per cent between April and May alone - an average of £1,200 - as the credit crunch continued to bite.

An average house now costs just under £308,000 and many sellers are having to settle for offers below the asking price to tempt buyers.

The only local authorities not to have seen prices fall are Barnet, Richmond, Newham, Camden and the City of London.

The biggest percentage falls were in Sutton and Lewisham, where prices are now almost four per cent below last May's levels. Other losers include Lambeth, Ealing, Hackney and Croydon, with falls of more than three per cent.

Richard Donnell, Hometrack's director of research, said the problem was supply outstripping demand for homes. He said: "What we call the 'buyer's strike' continues, with a fall of 11.7 per cent in the number of buyers registering with London agents in May. At the same time, the number of homes on the market, which is already greatly oversupplied, grew by a further 5.3 per cent."

Traditionally, May is one of the busiest months of the year. Hometrack found that while the number of viewings per sale was still high - more than 16 - sales themselves were down more than three per cent over the month. Contracts were being exchanged, on average, at eight per cent less than the asking price.

"The survey indicates that pricing looks set to remain under downward pressure over the coming months," Mr Donnell said.

Chris Brown, president of the National Association of Estate Agents, said: " Buyers are adopting a 'wait and see' attitude."