London house price growth grinds to a halt as the capital becomes the second slowest region in England and Wales

 
Georgina Varley
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London was beaten to the bottom spot by the north east (Source: Getty)

London was the region with the second slowest house price growth in England and Wales last month, a survey out today shows.

Although up 1.4 per cent annually, average house prices in Greater London fell 0.1 per cent month-on-month in April. Prices decreased 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 the same time last year, when the rush to buy ahead of stamp duty changes saw prices rise 13.6 per cent in the capital.

Read more: This London borough has the UK's worst salary to house price ratio

Prices at the top end of London’s market are struggling the most. Ranked by price, the top 11 London boroughs saw an annual increase of only 0.3 per cent, whereas the cheapest third saw an annual increase of four per cent.

Volumes in Kensington and Chelsea, the most expensive borough in London, fell 37 per cent between the first quarter of 2015 and the first quarter of this year.

House prices rose just 0.1 per cent nationwide for the second month in a row – to £301,606 – despite record low interest rates and high employment levels.

Read more: Nearly half of prime London property is now selling for below asking price

The area with the biggest month-on-month increase was the West Midlands, up 0.5 per cent, while the North East was the slowest region. Prices there fell 0.04 per cent.

The Council of Mortgage Lenders attributes the slowdown to the UK’s housing supply shortage.

Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “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.”

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