"Terrible reporting Lisa - the asking prices are still a long way from reality. My boss put five bids on five different flats last month - all around 25% to 30% below the asking price and was accepted on two. That equates to a £400k flat being sold for nearer £300k for the mathematically challenged.
Estate agents know this but are unwilling to publicly say anything. There is still very little activity in the market so you CAN get bargains. I tracked a one-bed nr Elephant & Castle on Old Kent Road (ok, not the most salubrious of areas but Zone 1).
It was in a 1920s building, not ex-council, and on market for £190,000. Sold at auction last month for £90k.
Bargains are there, just can't believe everything you're told by estate agents."