London house prices dip while rest of UK continues to grow

Alys Key
Follow Alys
Premium areas suffered some of the steepest declines (Source: Getty)

House prices in London fell last month, even as the rest of the UK continued to grow.

The average Greater London house price was down 0.8 per cent on the month to £593,396. This represented a 2.6 per cent drop in prices since this time last year, according to Your Move.

The biggest annual drops were seen in Wandsworth (14.9 per cent), Southwark (12.2 per cent) and Islington (8.8 per cent).

Read more: UK house prices just had their first quarterly fall in nine months

Boroughs which started out with lower prices fared better. Bexley's average house price was up 4.5 per cent to £363,082. Waltham Forest was the only area to set a new peak average price, of £464,872.

But overall the cheapest third of London’s borough still saw a fall in prices, down 0.5 per cent on a year ago.

Transactions in London were also down five per cent in the three months to January 2018.

This contrasted with the national picture, as annual house prices for the UK grew 2.5 per cent excluding London and the South West. But with the dip in the capital and the Home Counties included, the growth was only 0.6 per cent, compared to 0.7 per cent last year.

Oliver Blake, managing director of Your Move and Reeds Rain estate agents, said: "When examining the bigger picture, house prices are steadily balancing to meet the needs of house buyers which is welcome news for those looking to take their first steps onto the property ladder."

Read more: Property industry calls on Sadiq Khan to reconsider draft London Plan

But he added that housing supply is still not meeting demand.

"The industry needs to work together to provide a long-term solution to increase movement within the market," he said. "By building more homes and introducing more initiatives for each stage of the property lifecycle we should start to see more choice for first time buyers, second steppers and last-time buyers.”

Read more: High house prices are stopping people having kids

Related articles