Buyers are in control as house prices drop

Buyers have taken control of London's property market, as prices begin to fall across the capital, a report says today.

And the summer slump in property activity - coupled with nervousness about a crash - means sellers now outnumber potential buyers who are reducing their prices.

Monitors Hometrack said it is the first time since 2000 that there was not a price rise in a single borough.

A spokesman said: "The marked decreases of the past two months suggest property prices in London have peaked."

Prices froze in 12 boroughs and fell in 21. The biggest fall - 1.1 per cent - was in Havering. New buyers were down 8.1 per cent in August, as the number of properties offered for sale rose by 4.5 per cent. Sellers are accepting offers of over six per cent below the asking prices.

But John Wriglesworth, Hometrack's housing economist, said: "We continue to forecast an annual London house price forecast of five per cent for 2004."