London, England, United Kingdom (4E) – The London property market saw asking prices dropped for a second consecutive month in July due to higher number of homes for sale, according to property-website operator Rightmove Plc in a statement released Monday, softening the market for sellers.
Prices sought in London dropped 0.4 percent in July from the previous month to an average 587,174 British pounds ($1mn), according to the report. Prices declined 0.8 percent across England and Wales, their first drop since last December.
Monday’s data add to signs that the UK property market is losing momentum, following the Bank of England statement that it posed the biggest risk to the economic recovery. Last month, financial-stability authorities introduced a cap on loan-to-income ratios to keep prices from rising resulting to an excessive debt buildup.
The number of properties offered for sale in the British capital climbed 15 percent this year compared with the same period last year, Rightmove said. New sellers increased 28 percent from the prior year.
The decline was driven by the 3.8 percent drops on the month in Kingston, Wandsworth and Islington. Among the 10 regions tracked by Rightmove across the country, seven posted drops, led by 1.9 percent declines in the East Midlands and the North.