HOUSE prices in Harrow are falling for the first time since last year, according to recent figures.
Since March prices have dropped steadily from an average of £311,208 to £300,361 in June, a 3.5 per cent decrease.
The borough now seems to be falling in line with the rest of London, which has seen a decline in house prices since the beginning of the year.
The average price of a house in London now stands at £345,136, compared to £354,141 in March.
Gary Rawlinson, a partner at Rawlinson Gold, in Harrow, said: "I think the prices had always been falling.
"There may have been a delay in sales carried over in late 2007 as completions follow three or four months after the sale, which is why there was a high figure in March.
"I've been aware of valuations being very high, but I will not put a property on the market at a price that's unrealistic."
Martin Verden, chairman of the Harrow Heritage Trust, said: "It is a worrying situation indeed. It is a concern for a lot of organisations like the trust that this will lead to a loss of jobs.
"It will have a knock-on effect on our shopkeepers and communities."
But Philip Alexander Smith, a senior partner at Alexander Watson, in High Street, Pinner, believes the
worst of the slump is over.
He said: "It's difficult to pinpoint the exact time of a reduction, but prices have dropped around two to three per cent.
"People did over-price in the first place, but we are now achieving close to the asking prices, and those that want to buy are getting homes.
"I do see the light at the end of tunnel. Valuers that had no business before are now doing four or five a day."
As reported in the Observer in April, Harrow was bucking a national trend as the house prices in the borough rose. Prices went up by 0.18 per cent from April 2007 to April 2008, while prices in London overall dropped by 0.03 per cent.