The value of upmarket property is falling new figures available to Clear Property Investment, reveal.

Property near the top end of the market is not selling as well as in previous months while values for the top 10 per cent of properties have plunged by 0.4 per cent.

The figures, by portal Primelocation, is evidence that more top-end properties are available for sale. Areas hardest hit include London and the South West of England. And commuting is a big factor.

Company spokesman Andrew Smith, referring to London properties, said: "Large family properties in the suburbs, including Haringey, Ealing and Wandsworth, have been less in demand from buyers over the summer, which has instead seen purchases focus on town houses in zone one, as international buyers and UK businessmen look for prestigious properties without the commute."

Estate Agents say some valuers are cutting prices by as much as 25 per cent, fearing a double dip in the property market. They say a proposed increased stamp duty rate of five per cent in April and the 50 per cent tax rate introduced last year has prompted lower valuations.

Speaking in the Sunday Times, Estate Agent Ed Mead of Douglas & Gordon said: "The single biggest reason for a buyer to pull out of a sale at the moment is a down-valuation by a mortgage lender.

The figures are in contrast to those issued by Land Registry last week who reported a 12.1 per cent increase. However, analysts say the statistics are based on previous sales and not the current market situation.

Nationwide's Martin Gahbauer said: "Over the summer the housing market has stalled and it wouldn't be unreasonable to predict prices will give back the gains made over the first half of the year."

Buyers can get a second valuation done, based on previous sales in the area but traditional lenders - with the exception of High Street banks such as Clydesdale and Santander, are sometimes refusing to accept a second opinion.

Meanwhile, Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, rejected the notion of a double-dip recession. He believes instead that a 'state of normality' may be achieved before too long.

He also predicted that increases in VAT would keep inflation above its target for the next 18 months. Ernst & Young also predict a consistent Bank of England base rate for the next three years, resulting in medium-term stability.

For further information on property news please contact Clear Property Investment.

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