According to Rightmove, the monthly growth rate fell below the national average for the first time since December, with a nationwide monthly increase of 0.8 per cent.
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London had seemingly escaped the impact of four interest rate rises in 10 months, which had clamped down on house price growth across the rest of England and Wales, but, combined with a rush of sellers prior to the launch of Home Information Packs (HIPs), the pressure could be mounting.
Miles Shipside, commercial director at Rightmove, said: “We can expect a drop in house prices over the next few months, with the gap between house prices in London and the rest of the UK getting narrower. Ironically, those that sought to save a few hundred pounds by avoiding HIPs have contributed to a glut of property on the market which will actually cost them money as they will have to discount their prices to sell.”
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Rightmove’s June house price index recorded falls in 17 of London’s 32 boroughs, but boroughs such as Kensington and Chelsea and Richmond-upon-Thames continued to see upward movement.
Melanie Bien, associate director at Savills Private Finance, said: “We haven’t seen a slowdown yet. The prime market in London is booming and it seems like its own macro-economy at times which doesn’t relate to the rest of the country. The falls Rightmove talks about are just realism entering the market as prices have been rising at an unsustainable pace.”
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