Millionaires' house prices down

HOUSE prices in London's most sought-after areas fell for the second month in a row in October.

Estate agent Knight Frank said prices in the central London market - including Kensington, Chelsea, Regent's Park and Mayfair - were down by 0.5% following a 0.3% decline in September.

It is the first time they have fallen for two months in a row since June last year, when confidence wobbled over the Iraq war.

The year-on-year rate of increase has slowed from 8.2% in June to 4.4%, and the sales price to asking price ratio from 95.4% to 94.8%.

Houses priced between £2m and £4m were hardest hit.

Liam Bailey, head of residential research at Knight Frank, predicts 'flat growth' of 4% next year.

The central London lettings market is continuing to recover with rents 4.3% higher than last year - fuelled by homeowners who sold at the top of the market renting temporarily in the hope that prices will collapse.

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