London flat drops in value by £1m

03 2008
The owner of an idyllic mansion flat in central London has knocked a staggering £1 million off its asking price, it has been revealed today (June 3rd).

The property in Hyde Park originally went on the market at the back end of last year for £3 million when demand was high but now its price has been dramatically cut by a third.

The news appears to confirm fears about the state of the UK housing market, with a Nationwide survey claiming last week that prices fell by 2.5 per cent during May.

Estate agent Lloyd Coleman, who runs Colemans Residential Sales and Lettings in Finchley, told the Evening Standard: "I have been in the business for 13 years and have never seen it so tough. It is definitely a rental market at the moment."

Some observers have claimed that sellers in London are too optimistic about the value of their property after basking in the glow of the market's buoyancy during the past decade.

By contrast, buyers are concerned with gloomy predictions of further falls plus the difficulty of securing a mortgage as lenders tighten their conditions.

A recent survey by the Evening Standard revealed that many sellers in London are now being forced to cut their asking price by several hundreds of thousand pounds to attract interest.
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