Price growth in London's housing market edged lower in July, official statistics today showed, suggesting a cooling in the capital's market is here to stay.
Prices rose 2.8 per cent in the year to July, data from the Land Registry showed, down from 2.9 per cent in June.
However, the month on month change showed more encouraging signs, rising from a fall of 0.7 per cent in June to growth of 0.3 per cent in July.
Across the rest of the UK, house price growth averaged 5.1 per cent, up from 4.9 per cent on the month before.
The average price edged up to £223,257 in June to £226,185 in July.
The figures are the latest sign of a sluggish housing market across the UK, as uncertainty over Brexit and a change to stamp duty combine to put potential sellers off moving house.
Crucially, the volume of housing transactions fell to 74,962 in May, down 0.6 per cent from the year before. In England, the UK's largest housing market, 58,209 transactions took place, down 3.3 per cent on the year before.
Last week figures suggested house prices ticked up in August for the first time in a year - but Adrian Moloney, sales director at OneSavings Bank, said it was likely price growth will remain muted.
“A shortage of housing supply is upholding property prices, while buyers continue to walk a narrow tightrope to homeownership.
"On the one hand, strong employment growth and historically low mortgage rates are supporting buyer demand, but on the other, stagnant wage growth is being outstripped by consumer prices, making homes less affordable. Mortgage approval levels recovered last month, suggesting a small rebound in consumer confidence and affordability, despite the enduring economic unknowns that continue to cloud the long-term view.
“We’re still seeing ripples from the stamp duty increases of 2016, which caused a fair amount of turbulence in the property market, stymieing liquidity by discouraging people from buying or selling their homes. A move which has done little to address the underlying supply side issues that continue to fuel the housing crisis.”