London sees house prices fall 3%

London house prices slumped by nearly 3% in the year to June, mirroring a similar decline in the previous month.

While the regions saw a modest uplift in house prices, according to the government’s headline price index the average price of a home in the capital was £466,824 in June, down 2.7% year-on-year.

The index recorded the average price of a home in the UK as £230,292, up by nearly 1% year-on-year.

Wales saw the highest annual increase at 4.4%, followed by the East Midlands (3.2%), the West Midlands (2.6%) and the north west (2.4%).

The slowest annual growth was in England where prices rose by 0.7% in the year to June 2019.

Scotland saw house prices increase by 1.3% in the past 12 months.

Prices in Northern Ireland in the year to the second quarter – April to June – rose by 3.5%.

While annual price falls were a concern, the lower number of transactions – down nearly 17% year-on-year – was more worrying, according to Paul Stockwell, chief commercial officer of Gatehouse Bank.

“While house price falls are being registered in London, the South-East and South-West, these are not significant enough declines to make a difference for would-be buyers who cannot afford to get a foot on the property ladder or upsize to another home.

“While sellers will not want to see house prices fall off a cliff edge, the continued slowdown in transaction levels is unsustainable in the long-term.”