Prime property prices fell in August

The average price of prime property in the UK fell by 0.3 per cent in August, further evidence that the strong recovery in the prime property markets has stalled.

According to Primelocation.com, the average price of a prime property fell 0.3 per cent to £457,052, while the average value of a prime platinum property - which it defines as the top 10 per cent of all UK property - declined by 0.4 per cent to £638,366.

This supports figures from Knight Frank, the upmarket property agent, last month which revealed prices for prime London property fell by 0.5 per cent in July. This was the first monthly decline since March 2009.

Growth in prime property prices has slowed due to an increase in properties coming onto the market and demand declining from top-end buyers.

Primelocation.com said it has seen a 6.7 per cent rise in the supply of prime properties, the seventh consecutive monthly increase.

“Top end vendors have continued to put their properties onto the market and now that buyers have a healthy range of quality property to choose from, upward pressure on prices has eased in all but the most sought-after areas,” said Andrew Smith of Primelocation.com.

South West of England and West London experienced some of the highest monthly price drops, falling 3.1 per cent and 4.3 per cent respectively.

“Large family properties in the suburbs, including Haringey, Ealing and Wandsworth, have been less in demand from buyers over the summer, which has instead seen purchases focus on town houses in zone one, as international buyers and UK businessmen look for prestigious properties without the commute,” said Smith.