Greater London has seen yet a further reduction of 0.4% month on month in house price values making it the worst performing region.
Over the past two months, average prices across England and Wales have also continued to fall by 0.4%, making the value of the average home £296,609, just 3.4% higher than the same time last year.
Whilst average house prices in Scotland fell by 0.3% on the previous month, they remain above 12 months ago at 5.4% higher – averaging £179,511. Average house prices in Wales are up only 0.6% on the same time last year, at £184,975, and have fallen by 0.7% month on month.
The South East saw the greatest fall at 0.8% down on the previous month. It remains 3.2% up over the year with an average price of £391,391. The East of England has also seen a rise in the average house price over the previous twelve months of 10.6% although values were down 0.3% in the latest month on month figures.
The director of home.co.uk, Doug Shephard, pointed out that the annualised rate of increase is now only 3.6%, with a clear downwards trend, compared with December 2015 when it was 8%, and in London year on year growth is negative for the first time since 2010.
“The same slowdown that hit London is rippling out to the South East and East of England. Supply of homes for sale has risen very rapidly in both regions and we expect that this will soon impact negatively on marketing times and later on prices,” said Mr Shephard.
The length of time properties are on the market is also beginning to creep up in the South East, with an average house price growth at 3.2% compared to December 2015, when it was at 10.6%. This is an indication that the slowdown which started in prime central London back in 2013 has now spread to Greater London and beyond, particularly the East of England and South East.
Mr Shephard believes that the downward trajectory in price growth in London and the South East will greatly affect the national growth figures for England and Wales; a trend he believes will continue until the end of 2017 leading to price growth falling to zero or below.
It is not bleak everywhere however. Regional figures show that several areas are performing better, particularly the West Midlands and Scotland, with price growth gains above 5% on the previous year and no imminent signs of a downtown, and modest increases in supply.