Prime property prices fall by 1.3% over summer

As with the overall picture for the UK’s housing market, prime property in the UK has also taken a downward turn with the latest figures revealing that prices in this sector have fallen by 1.3%.

The latest Prime Property Index from PrimeLocation.com has shown that the value of homes in the top 25% of the UK market by asking price dipped by £6,234 over the summer months.

In London the decline was even more marked, with prime property prices in the capital falling by £13,997 over the same two month period.

This is the second consecutive month that prices of the UK’s most expensive homes have plummeted, according to the index.

July saw prime property prices fall by 0.5%, followed by a fall of 0.8% in August, bringing the current average asking price of prime UK homes to £476,302.

These figures reverse the trend recorded last year when increases in prime property prices were recorded in both July and August, pushing average asking prices up by £2,900 over the two month period.

“The market for the UK’s most valuable homes is a resilient and healthy one, which is why this mid-year fall in prices is worth taking note of,” said Lawrence Hall of Prime Location.

“Owners and potential buyers of the UK’s prime homes will be keeping an eye on price movements over the coming months as we discover whether this fall in asking prices is a temporary summer lull or whether this is actually sellers getting ready and adjusting prices for the September market.”

Further figures from the research highlighted the fact that while the cost of prime homes in the UK as a whole declined over the summer months, prime property prices are still 1.3% higher than they were at the same time in 2011.