London property prices dropped nearly £12,068 – or two per cent – on average in August as the holiday season weighs on house prices, according to Rightmove's latest house price index.
The cost of a home in the capital remains higher than a year ago. However, London’s annual rate of price increase stood at 1.6 per cent compared to the national average of 3.1 per cent.
Nationally, prices of property coming to market have fallen by 0.9 per cent or £2,758 this month, according to the closely-watched index.
“Londoners value their summer breaks and when they are turning their thoughts to the beach, they seem to turn off property. Sellers who come to market at this time of year have to price keenly to attract distracted buyers,” said Miles Shipside from Rightmove.
“In addition, sellers of higher value property often have the discretion to be able to delay marketing. Both of these factors help to reduce average asking prices for newly-marketed properties, but this can be an opportunity for buyers to find a deal.”
Read more: Double, double, London house prices bubble?
Earlier this month the Royal Institution of Chartered Surveyors reported that London and the south east were weighing down average UK house price growth.
How did London do?
Hackney leads the way with the largest year-on-year increase, up by 8.9 per cent, or £10,308, and also bucking the summer holiday blues with a 1.5 per cent rise this month.
Search for value for money and the Crossrail effect also boost the annual rate of the easterly boroughs of Redbridge (up 7.7 per cent), Bexley (up 5.7 per cent), Greenwich ( up 5.7 per cent), Newham (up 5.1 per cent) and Havering (up 3.4 per cent) – all outperforming the London average of 1.6 per cent.