I've written several times about the idiocy of thinking that prime London house prices can somehow avoid the slowdown hitting the rest of the market, most recently in last weeks editor's letter, which subscribers can read here: Even London's property market can crumble. (If you're not already a subscriber, subscribe to MoneyWeek magazine.)
It seems perfectly obvious to me that with bonuses and mortgages thin on the ground, taxes on the up, and a double-dip recession very close indeed, not even the richest of foreign buyers can single-handedly keep the market up for long. The numbers out over the last few months have backed this up, showing prime London prices moving in tandem with the rest of the market.
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