Telegraph: Prices of luxury London homes drop for first time in 18 months

The closely-watched quarterly central London survey from Savills, the upmarket property agent, shows prices in the third quarter of 2010 are set to fall 0.9pc in Knightsbridge, Chelsea, Belgravia, Mayfair and Marylebone. This will be the first fall since the opening quarter of 2009 and has been caused by an increase in properties on the market as vendors seek to take advantage of a rise in prices, just as economic uncertainty limits buyer demand. The Savills research monitors properties roughly worth more than £1m in central London, a market considered to the most robust in the UK given the relative health of the capital’s economy and demand from equity-rich overseas buyers.