Prices of multimillion-pound homes in Central London may fall over the coming months as weaker financial markets and fears over patchy City bonuses and job security take their toll.  Savills, the property agency, expects minimal price growth – at best – over the coming six months and it is braced for prices to fall back by up to 5 per cent between the end of this month and the new year.  The agency is the first to adjust its growth expectations for prime parts of

 For the past two years much of that growth has been fuelled by a multibillion-pound spending spree by City investment bankers, lawyers and accountants and a dramatic rise in the numbers of wealthy overseas buyers, particularly Russian and Middle Eastern investors.  Homes at the highest risk of price falls are priced between £1 million and £3 million, “where City buyers make up the highest proportion”, according to Lucian Cook, director of Savills residential research.   House-price growth has fallen back sharply over the past three months, with inflation down to 3.2 per cent quarteron-quarter, compared with the 9 per cent quarterly growth between January and March.  

Source: The Times, 24/09/2007

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