London house prices recorded the biggest average fall of any region in England and Wales in August, according to new data, as the squeeze at the top end of the British property market continues.
Prices in the capital grew by only 0.7 per cent in the year to August, as the average price dropped by 1.4 per cent during the month in Greater London, according to estate agency group LSL Property Services and Acadata.
The steep fall in London dragged down the average price across the whole of England and Wales, which dipped for the fifth consecutive month.
Read more: Falling asking prices in London drag down average British house prices
Wales, the North West and the East of England saw prices rise in August, with the latter the strongest-performing region during the last 12 months, at 5.5 per cent growth.
The 10 most expensive London boroughs
Ave price (£)
Kensington & Chelsea
City of Westminster
City of London
Hammersmith & Fulham
Richmond upon Thames
The index, based on Land Registry figures combined with various sources of house price data, shows the average price has still risen year-on-year, by 2.1 per cent. However, the Your Move index annual rate of change has slowed dramatically from 6.1 per cent in August 2016, and as high as 9.1 per cent in February 2016.
The index corroborates other measures of house price movements, which portray a weakening market for British residential property.
Economists have described rapid price increases as unsustainable for the British property market, while the rise of inflation at a faster rate than wages has squeezed Britons’ spending power.
Oliver Blake, managing director of Your Move, a subsidiary of LSL, described the environment as a “balanced market”, with growth driven by more affordable East of England region after years of house prices in the capital far outstripping salaries for most first-time buyers.
Read more: London house price growth fell again in July