London house prices fall

For the first time in over one year, house prices in London have actually fallen, according to the property company Rightmove.

And this month, estate agents took less property onto their books than they have at any other time so far this year.

Such signs point to the fact that the house price market, which has been steadily expanding, may be slowing.

Miles Shipside, commercial director of Rightmove, said: "Whilst this month's fall in London prices is slight, this is an early warning signal that even the buoyant London economy is susceptible to market forces.

"The latest evidence seems to indicate that we have now genuinely reached the limit of buyers' ability to afford higher prices in current market conditions."

Currently, the average price of a house in Greater London is £394,268, which represents a drop of 0.1 per cent on the previous month.

The rate of interest stands at 5.75 per cent, though many have forecast that it will be raised once again in the near future.

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