Property prices in the capital continued their decline in October with a fall of 0.9 per cent, according to one London estate agent.

Figures from Haart estate agency show that the annual price decline stands at 15 per cent, with an average property in the capital now selling for £245,036.

However, property prices were faring well the company states, with vendors across the city achieving 95.5 per cent of their asking price, up from 94.5 per cent four months ago.

The estate agent also believes the property market is at its lowest ebb does not expect further falls of more than two per cent in the coming months.

Russell Jervis, Managing Director of Haart, says: "These are promising signs that competition is returning to the market and more mortgages will be made available."

He added that vendors willing to take estate agents'' advice and lower their asking price were having more success selling their properties.

According to the Council of Mortgage Lenders, falling house prices are not helping first-time buyers.

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