Property buyers in the capital have to spend nearly twice as much as people in the rest of the country for a house, despite values continuing to fall.
The national average house price in the UK was £285,044 in July, which is almost £250,000 less than a typical property in London.
Halifax House Price Index for July 2023 revealed homes in the capital were £531,141 last month, having fallen by 3.5 per cent over the preceding year.
This is greater than the 2.4 per cent annual decline in national prices, but the huge differentiation between London prices and the rest of the country still remains.
Director of Halifax Mortgages Kim Kinnaird predicted house prices will continue to fall into 2024, adding: “The continued affordability squeeze will mean constrained market activity persists.”
Although homeowners are likely to be worried about the recent decline in prices, Ms Kinnaird reassured them that house price growth of the last few years is unlikely to be completely reversed.
She noted that average property prices in the UK are still 19 per cent above pre-Covid levels, amounting to a typical value of £45,000.
Additionally, areas that offer a good location, great atmosphere and plenty of amenities are even more likely to maintain their value.
Estate agents in Cheam village in Greater London still experience a high demand from property buyers, thanks to its leafy surroundings, picturesque setting, and great transport links.
Being able to reach the city centre by train makes it popular for commuters, while its large open spaces, such as Cheam Park, and good secondary schools mean it is an ideal choice for families.
Cheam village, full of trendy restaurants and bars, is also a hot spot for young professionals.