Rise in London house prices slows, experts find

House prices in the capital have slowed to what experts say is the weakest growth in 18 months. Property analyst Hometrack found house prices rose by only 0.1% month-on-month in July.

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Reasons for buying London home 'starting to change'

The rush to buy property in the capital is slowing because pent-up demand caused by the 2008 crash has started to slow, a housing expert said.

Richard Donnell, director of research at property analysts Hometrack explained:

Overall, market conditions have been strong since early 2013, as a result of pent-up demand returning to the market outside London and with buyers encouraged by low mortgage rates and the launch of Help to Buy, but it now appears that market sentiment is starting to change.

"House prices were unchanged in London over the month, the lowest monthly change for 19 months.

– Richard Donnell

Where house prices rose and fell around UK in July

  • House prices were unchanged month-on-month in London, Wales and the North East, while they increased by 0.1% in Yorkshire and Humberside.
  • They increased by 0.2% in the East, West Midlands and the North West.
  • And by 0.3% in the South East and the South West.
  • East Anglia recorded the strongest month-on-month uplift in property values at 0.5%.
  • Across England and Wales, around one quarter (24%) of postcode districts saw prices increase over the month, falling back strongly from the spring, when around 50% of postcodes were recording price gains.
  • Around 1.5% of postcodes across the country saw prices fall month-on-month in July.

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London house price rise 'slowed to lowest rate' in July

London house prices slowed to their lowest rate last month, making July the weakest growth in the capital's property market in 18 months, experts said.

Only 12% of postcodes in London had property which rose in value during July. Credit: PA

Momentum slowed to just 0.1% month-on-month, property analysts Hometrack found.

The rise in house prices "slowed dramatically" with just 12% of London postcodes registering price gains in July and a further 11% reporting a drop.

Hometrack said this marked the first time in four years that London has had a smaller proportion of markets registering price gains than regions across England and Wales.

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