Average house prices in London have dropped by 1.2 per cent over the last year.
According to the latest Halifax House Price Index, this meant a typical property in the capital came in at £536,622 in May 2023.
This is just over £250,000 more than the national average, which was £286,532 last month.
As well as London house prices falling, the annual rate of growth for the whole of the UK dropped by one per cent.
Director of Halifax Mortgages Kim Kinnaird noted this is the first time there has been a year-on-year decline in prices since 2012.
However, values remained unchanged since April 2023, which led Ms Kinnaird to say: “Given the effectively flat month, the annual decline largely reflects a comparison with strong house prices this time last year, as the market continued to be buoyant heading into the summer.”
This time last year saw a different picture, as annual house price growth was 10.6 per cent in May 2022. This rose to a peak of 12.5 per cent the following month before values began to fall.
Declining house prices is good news for homebuyers, as they might be able to purchase a property they would have otherwise been unable to afford.
However, mortgage rates continue to be high, with many two-year fixed-rates heading towards six per cent.
Finding an affordable property in terms of both its value and mortgage payments can, therefore, be difficult, but using an estate agent in Cheam Village can help with your search.