London house prices falling £155 a day

THE average London homeowner lost £155 a day on the value of their property during August as house prices in the capital continued their slide.

Prices fell by one per cent during the month to an average of £484,362, down almost £5,000 on July, according to latest Land Registry data. The year on year rise is now down to 2.6 per cent, less than the rate of inflation during the month.

London was the only English region to see a monthly fall in prices, suggesting that buyers are preferring to search for properties outside the capital. Jonathan Hopper, managing director of home buying agents Garrington Property Finders, said: “What began as a gentle dip in the London property market is rapidly turning into a full-blown flight of equity from the capital.

“As first-time buyers, movers and downsizers eschew the capital in greater numbers, several regional markets are being given a boost.”

City economists also blamed uncertainty over Brexit for the slump.

Richard Snook, senior economist at accountants PwC, said: “The uncertainty over Brexit may be felt more keenly in London than other areas due to the importance of international businesses. Figures from the City of London bear this out where prices are down 5.6 per cent compared to a year ago.”

After the City the biggest year on year falls were in the most expensive central boroughs led by Westminster, where they dropped 2.5 per cent, and Kensington & Chelsea, down 1.5 per cent. The biggest riser was Camden with a 13 per cent year on year increase.

Jonathan Samuels, chief executive of property lender Octane Capital, said: “Even by its own standards, prices in the capital had become obscene and so the current cool-down is a positive [in the] longer term.”