Survey reveals that the capital's 10% drop is UK's worst

New figures have revealed that property owners in London have been the hardest hit by the economic downturn, the BBC reports.

A survey of over 1,800 UK estate agents, conducted by property information firm Hometrack, has revealed that house prices in London fell by 10.1% in 2008, compared to a national average of 8.7%.

Although the results show that the slump in the housing market may be slowing, with a price drop of 0.9% in December compared to November's 1.1%, it indicates further decline to come, with an anticipated drop of 12% in 2009.

Richard Donnell, research director for Hometrack, predicts little relief for homeowners in 2009: “The onset of recession and the prospect of rising unemployment over 2009 will continue to damped confidence and, in turn, demand, which will inevitably lead to further house price falls over the next 12 months.'

Overall UK house sales volumes also dropped 45% in 2008.

Topics