The cost of properties in London is falling at its fastest pace in seven years, according to new analysis.
Data released by the Office for National Statistics (ONS) revealed the average price of a home in the capital was £490,000 in February, the lowest for two years. This represented a £9,000 reduction.
Its House Price Index for February also noted that prices across the UK increased by 7.2 per cent over the past year. This is down from 8.4 per cent in the year to January 2015.
However, it reported that annual house price growth is beginning to slow across most of the country.
“In February 2015, prices paid by first-time buyers were 7.4 per cent higher on average than in February 2014,” the ONS said.
It added that for owner-occupiers - which it to say existing owners - prices went up by an impressive 7.2 per cent for the same period.
In related news, LSL Property Services found that annual house price growth in the UK had slowed to its lowest rate since January 2014.
“Property prices in England and Wales continue to hit new heights, yet the cogs of the machinery are flagging to the most laboured pace we’ve witnessed for sixteen months,” said Adrian Gill, director of Reeds Rains and Your Move estate agents.
“Slowing to 5.6 per cent in March 2015, annual house price growth has now been waning for half a year, and hasn’t been this sluggish since November 2013.
“But with homes on average worth £14,620 more than a year ago, it’s a far cry from anything worth lamenting from a bird’s eye view – even if people on the ground might feel somewhat differently.”