The LSL England and Wales House Price Index revealed that the average UK house price currently stands at £277,857 after increasing by 0.3% from December.
Adrian Gill, director of Reeds Rains and Your Move estate agents, said: “After some recent price falls, average property values haven’t taken any steps forward from where they stood in November – and what we’re seeing is a far cry from the marathon of monthly increases that set off this time last year.
“In a reversal of fortune, London is leading this slowdown.
“The capital has long been the propeller driving forward growth, but after cruising ahead at full speed in 2014, the London property market has run aground momentarily.
“Average London house prices experienced the biggest drop during December (1.1%), but this is just a symptom of the unsustainable rate of growth that the market stretched to last year, as the capital now takes a pause.”
Excluding London and the South East house price growth stands at 4.5%, as despite the slowdown London still achieved annual growth of 14.4% to January.
The lowest priced London borough, Barking & Dagenham, saw home sales increase by a third (33%) from the fourth quarter of 2013 to the fourth quarter of 2014.
Gill added: “The London story acts as a miniature model of what’s happening in the rest of the UK housing market.
“The market is temporarily treading water at the higher end, but fast-moving in areas where price growth has been more modest, and where cheaper properties are within reach of new buyers and borrowers who can access Help to Buy.”
The North is currently powering the market, as completed home sales recorded an annual increase of 7.0% in the fourth quarter of 2014, while Yorkshire & The Humber stood close behind with a 4.1% increase.
