The average UK house price is now growing at twice the rate of London property
What a difference a few months can make. Having once been seen as pulling up average UK house price growth, it seems London is now having the opposite effect, dragging the national average down, according to new figures.
The National Housing Market Monitor, by estate agent Haart, found UK house prices grew 10 per cent to £221,797 in the year to September. By contrast, that growth was 5.2 per cent in the capital, where the average price is now £521,383.
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Meanwhile, house prices for first time buyers rose 4.7 per cent to £167,730 – although that figure fell 0.9 per cent between August and September.
But the figures also suggested the number of people buying properties across the country has plummeted, with 60,100 exchanges taking place in September, 11.9 per cent lower than during the same period last year.
However, Paul Smith, Haart's chief executive, suggested London won't be behind for long.
"This is likely to only be a temporary trend as the divergence between supply and demand is much greater in London than the rest of the UK and this will eventually push up prices.
"In London there are 78 per cent more buyers chasing every property on the market than in the UK as a whole, resulting in a much more competitive property market."