According to Rightmove the property website, house price inflation in London fell by 2.7% in March.
Rightmove surveyed over 1,000 people regarding the fall. Almost 60% of people surveyed believed that the fall was due to the uncertainty in Iraq. 70% of the people surveyed in London held this opinion.
Many of the people surveyed believed that the war with Iraq had affected their attitudes towards house hunting at the moment.
Our view
With interest rates low and the summer months just around the corner, expect the housing market to become buoyant. If prices are falling in London, expect this in the rest of the country over the next six to twelve months.
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