A slowdown in house prices places London as the region with the second lowest house price growth in England and Wales, a new survey shows.
Although up 1.4 per cent annually, average house prices in Greater London fell 0.1 per cent in April, decreasing by £750 to £610,418, according to the latest England and Wales House Price Index from Your Move.
This is in stark contrast to the 12 months leading up to April 2016, when the rush to buy ahead of Stamp Duty changes saw prices rise 13.6 per cent.
The more expensive properties are the ones struggling the most. Ranked by price, the top eleven London boroughs saw an annual increase of only 0.3 per cent, whereas the bottom third saw an annual increase of 4 per cent.
Volumes in Kensington and Chelsea, the most expensive borough in London, fell a staggering 37 per cent between the first quarter of 2015 and the same period this year.
The report also highlighted that average house prices rose just 0.1 per cent nationwide for the second month in a row despite record low interest rates and high employment levels.
The Council of Mortgage Lenders attributes the slowdown to the UK’s housing supply shortage. The market is currently being driven by first time buyers who are likely to be looking for cheaper properties and existing owners are increasingly choosing to remortgage their homes and stay put.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “Real transformation is needed to address the housing supply shortage. Recent reports from House of Commons committees have made a strong case for the government to do more.
"As manifestos are published ahead of the upcoming election, we hope there is commitment to bridging the gap between supply and demand which will stimulate more market activity, stability and enable more people to secure their dream home."