Prime home price drop eases

HOUSE prices in the most sought-after parts of central London are falling more slowly than at the end of last year.

Estate agents Savills recorded a fall of 4.2 per cent in the first three months of this year for properties in Kensington, Belgravia and St John's Wood, half the 8.4 per cent fall in the previous three months. The figures will fuel hopes that the downturn has begun to ease.

But the year-on-year figure is down by 20.5 per cent from last April, which is more than the wider London housing market has experienced. The saturated lettings market has seen rents falling 4.4 per cent since Christmas.