London house price growth slows again

Billy Ehrenberg
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London's house price index fell 1.1 per cent between August and September (Source: Getty)

London house prices may still be soaring ahead of the UK curve at over £500,000, but their lead is shrinking.

According to new data from the Office of National Statistics (ONS), growth in the capital slowed from 19.6 per cent in the 12 months to August to 18.8 per cent in the year to September, while the house price index for the capital actually fell, by 1.1 per cent.

That 18.8 per cent growth rate was still far above the UK average of 12.1 per cent, but the capital was one of only three regions with a lower annual growth rate than a month ago.

The average selling price of a house in the capital was £508,000 in September, compared with £514,000 in August. The price index for London fell 1.1 per cent from August's record high, but remains 37.9 per cent above its 2008 peak.

This latest data is just part of a steady stream of statistics suggesting a slowing of demand in the capital.

Nationwide, which also produces a house price index, reported that London is no longer the region with the fastest growing house prices. Data for the year to October showed that the South East had overtaken the capital. The differences in the data nd methodology of fifferent indices means they are not direcrly comparable.

Despite the apparent slowing, London remains the main driver behind the UK's growth. The ONS data shows the "London and the South East" effect boosted house price growth in the UK from 9.1 per cent to 12.1 per cent.

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