Sales of new homes in London will be a third lower this year than last as investors turn their back on the capital according to new FPD Savills research. Developers need to shift their attention to owner occupiers which will lead to longer sales periods and higher marketing costs. <p></p><p>Savills&amp;’ Central London Residential development Survey finds that average asking prices have gone through the &amp;£500 per sq ft barrier but will fall back by up to 10% this year, while build and other costs will keep rising by 8.5% in the next two years.</p><p>A second Savills report - UK Land &amp;&amp; Development Research Bulletin - finds that developable residential land banks were 32% smaller in 2001 than in 1999, giving just two and a half years&amp;’ land supply even at current low build rates.</p><p></p>