The latest figures
The pace of house price growth has slowed down in London in the past year. This highlights a change in the UK property market.
According to official figures, only the North East and Scotland saw smaller house price rises than London over the past 12 months.
The Office for National Statistics (ONS) said that house prices rose 1.5 per cent in London in the year to the end of March.
Just a year ago prices in the capital were going up nearly 15 per cent year-on-year.
This shift isn’t just being seen in London. During March house prices were lower in every nation and region in the UK compared with the previous month except for Wales.
Across the UK as a whole the ONS said house prices were down 0.6 per cent compared with February. This meant the average home cost sat at £215,848.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “It is now abundantly clear that the housing market is in its softest patch for several years,”
“Looking ahead, it is very hard to see growth in central London prices recovering, given that valuations look stretched, the financial sector is facing an uncertain post-Brexit future and volatility in sterling is undermining property’s safe-haven appeal for overseas investors.
“Across the rest of the UK, house price growth looks set to remain dampened by sluggish growth in wages and the loan-to-income limits imposed on lenders.”