Annual London property growth now 'negative' Published: 01/09/2008

London's property prices have seen a decrease for the fourth month in a row, according to new figures.

A study by Knight Frank found that property values in the capital dropped last month, bringing annual growth to a negative value for the first time since 2003.

In August, the average price of a London property fell 1.3 per cent. This followed falls of 1.6 per cent the previous month, 1.7 per cent in June and 1.5 per cent in May.

Following the decreases, the annual property value growth for London now stands at -1.6 per cent.

This is down from the 37.9 per cent annual growth seen in August last year, the figures show.

Commenting on the findings, Liam Bailey, head of residential research at Knight Frank, said: "Over the past few months, we have noted 'super-prime' properties worth more than £10 million have proved immune from the downward trends elsewhere.

"There are now signs that the gap between this sector and the rest of the market is growing."

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