London residents are slashing the prices of their homes because of the typical late summer hiatus of selling and buying a home according to bloomberg.net.
"A holiday-season price dip is the norm in August," Rightmove real estate website Director Miles Shipside told Bloomberg. "It's down-time rather than a downturn. The top-end market remains buoyant, but they're currently busy bobbing about on their yachts."
The summer hiatus reached high-end housing in places such as London's Kensington a Chelsea borough on Landsdowne Road where several houses appear vacant bloomberg.net reported. According to bloomberg.net, potential capital prices dropped 2.8 percent from July to an average of 501,067 pounds or $784,000.
The Kensington, Camden, and Westminster boroughs which normally see prices of homes go over 1 million pounds, fell 90,000 bloomberg.net reported. On a national scale, prices showed their first decrease for 2013, falling 1.8 percent this month bloomberg.net reported.
Despite the downfalls, costs still showed an incline of 5.5 percent over the last year because of strategies by the government and Bank of England to increase demand bloomberg.net reported.
"The underlying recovery in the housing market continues," Shipside told bloomberg.net. "Demand is already on the up, and that's before the roll-out of phase two of Help to Buy.
"It is now critical that the supply of property improves so that the goal of a significant increase in transaction numbers is not overshadowed by an unsustainable boom in property prices."
While prices in Kensington and Chelsea decreased 4.7 this month from July, and those in Camden fell 6.9 percent, median prices across London were still up 10 percent over the past year. bloomberg.net reported.
Prices also dropped in London's financial district 2.5 percent for the largest drop. Westminster home asking prices also fell 2.4 percent.
