London suffers largest fall in house prices since 2009 as figures in Midlands lift 10pc

HOUSE prices in London recorded their largest annual fall in nearly nine years in the 12 months to June, dropping by 0.7pc as the property market across the UK continued to slow.

Three central London boroughs recorded double-digit drops, with prices in the City of London down by 23.8pc, Kensington and Chelsea by 13.9pc and the City of Westminster 12.1pc, according to the Office for National Statistics.

London none the less remained the most expensive region in the country to buy, with the average home costing £477,000 in June, more than twice the UK average of £228,000.

Across the UK, prices increased on average by 3pc in the 12 months, the slowest rate since August 2013. This continues a trend of weak growth in the market, which has grown at around 5pc or under since the start of 2017.

Paul Smith, chief executive of Haart estate agents, said: “Middle England is thriving – prices in areas of Birmingham, Nottingham and Leicester rose by a huge 10pc on the year, and families across the UK looking for a semi-detached home are having to pay almost £10,000 more than they were the same time last year. There remains an imbal- ance between supply and demand, making now a good time to sell.”

Some of the most expensive areas in the South also saw prices fall. In south Buckinghamshire prices fell by 4.9pc over the year. Prices in Oxford and Cambridge dropped 2.2pc and 0.1pc respectively.

Prices also fell in the North East, the cheapest region in the UK to buy a house, where the average home costs £127,000.

The growth in rental prices remained weak too, rising 0.9pc in Britain in the year to July.