June 9 (Bloomberg) -- U.K. house prices fell in May by the most since at least 1991 as the shortage of credit cut off demand from buyers. Property values have now declined for seven months, the longest streak of drops since 1992, the Nationwide Building Society said. Luxury-home prices in London, the world's most expensive city for prime real estate, have so far proved more resilient to the slowdown. The annual increase in the average price of prime London property was 13 percent in May, down from a peak of 38 percent in August, according to brokers Knight Frank LLP. This feature highlights the likely impact of a slowing economy, coupled with job cuts in the financial-services industry, on London's luxury residential market. (Source: Bloomberg)

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-0- Jun/08/2008 23:35 GMT

Last Updated: June 8, 2008 19:35 EDT