Monday, 17 December 2007

London, Biggest drop in five years!

You all remember Michael Jackson and its way of defying gravity. It was like nothing will make him fall. The real estate in the UK was somehow behaving the same way, defying common sense rules and the show was surrealist. but in the last two months the party has ended... a little bit like a very long night of heavy drinking, everything looks great until the morning. The headache starts and you promise yourself you won't drink any more...

Here is what happen in this morning:

"London Leads the Biggest U.K. House-Price Drop for Five Years"

"London led the biggest drop in U.K. home values for at least five years this month as higher mortgage costs and the prospect of further declines in prices kept away buyers, a report by Rightmove Plc showed."

"The average U.K. asking price fell 3.2 percent to 232,396 pounds ($473,437) from November, the largest decline since the survey of real-estate agents' listings began in 2002, Britain's most-used property Web site said today."

"London home costs dropped 6.8 percent, also the most recorded by Rightmove."

Source: Bloomberg

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