London house prices fell for the fourth month in a row in November, official figures have shown, suggesting the cooldown is showing no signs of abating.
Average prices in the capital fell to £482,000 in November, down 0.9 per cent on the month before, and 1.6 per cent lower than the £490,000 peak they hit in July last year, the figures from the Land Registry showed.
However, London prices edged up 2.3 per cent in the year to November, making it and the North East the regions with the joint-slowest house price growth.
Meanwhile, average house prices in the rest of the UK edged up 0.1 per cent between October and November, hitting £226,071. The figure rose 5.1 per cent on the year before, down from 5.4 per cent growth in October.
“London has been a victim both of its own success – the years of unsustainable, double-digit price inflation – and of the punitive rates of stamp duty which now apply to the capital’s most expensive homes," said Jonathan Hopper, managing director of Garrington Property Finders.
“Despite a shortage of stock, the capital is now seeing a marked correction as sellers reduce prices in an effort to woo back domestic buyers, many of whom have been searching for better value beyond the M25.
“The flight of equity from the southeast has spurred several regional cities. Cambridge saw prices rise by a breathtaking 16.4 per cent in the 12 months to November, and prices in the newly energised Manchester market rose by 12.7 per cent."