House prices in Petersfield have dipped 10 per cent in the last year, according to estate agents.
The town is traditionally seen as a refuge from property slumps with good schools and good links to London holding prices high.
But the gathering gloom over the national market has now spread to Petersfield, forcing down prices. Barbara Loweth, ma
nager of Humberts in Lavant Street, said Petersfield is "not immune" to property trends.
"Petersfield is affected as much as anybody else in the country right now and I would say there has been a 10 per cent down turn over the last year," she said.
"People say Petersfield has its own microclimate but it doesn't. We're lucky because it's a good market town, with really good schools and we've always had the London market coming this way but people have to be realistic at the end of the day.
"If you are seeing a national downturn Peters-field is bound to be affected.
"A lot of buyers are coming from out of the area so if they are selling their homes for less money they will not want to pay more."
The view from agents contradicts Land Registry figures which show the average price for East Hampshire having risen by 10.7 per cent over the last year.
Agents say recent price drops have not yet been taken into account by these figures while continued sales at the top end of the market, £1m properties and above, keep averages high and mask the real story.
Andy Woodcraft, manager of haarts in the High Street, said prices had dropped over the last couple of months and fewer sales are being made as the market slows down.
"People are having to accept five to 10 per cent below the asking price. We have done asking price sales but over the last two months the general trend is somewhere between five and 10 per cent down," he said.
"Nationally there are 60 per cent fewer houses being sold this year than last year. It just shows the business isn't there. The biggest problem is the lack of movement at the bottom of the market.
"Buy-to-let mortgages are less attractive and first time buyers must readjust to the fact the 100 per cent mortgages have gone, so they must get a deposit.
"With no-one buying at the bottom of the chain there are fewer buyers around and so people selling have to make their house more competitively priced."
He said the town's traditional strengths, such as commuters from London, good schools, High Street
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