LONDON led the biggest drop in British home values for at least five years this month as higher mortgage costs and the prospect of further declines in prices kept away buyers, a report by Rightmove plc showed. The average British asking price fell 3.2% to £232,396 ($A473,437) from November, the largest decline since the survey of real estate agents' listings began in 2002, Britain's most-used property website said yesterday. London home costs dropped 6.8%, also the most recorded by Rightmove. "The market is tough out there," said Miles Shipside, the company's commercial director. "We see a flat outlook for next year, with no price rises, as we work our way through this liquidity crisis." The Bank of England this month cut the benchmark interest rate for the first time in two years, citing the threat of an economic slowdown.