Prime Minister pledges action as property goes into freefall
LONDON house prices have crashed faster and further than anywhere else in the country, reports to a new survey.
According to property valuation website zoopla.co.uk, houses in London have fallen by an average of UKP133.58 a day, or UKP1000 a week, since the start of this year. Prices elsewhere in the UK have decreased by UKP44.39 a day, say zoopla.
There looks to be worse news for house owners to come. "Rapidly deteriorating sentiment over the housing market heightens the risk that prices could fall more sharply over the next couple of years," said Howard Archer, of market experts Global Insight.
On the bright side, zoopla report that the prices of flats have stabilised after falling towards the end of last year.
As well as the election for London Mayor, there are local authority elections across the UK tomorrow and the house price drop has assumed major political proportions, with Prime Minister Gordon Brown worried his Labour Party will get the blame via the ballot box.
"My aim and my priority is that we can lead the people in Britain through this economic problem and do so by taking the right decisions to get liquidity to the banks, to make sure that the housing market starts moving again," said Brown today.