The Londonproperty market suffered its biggest monthly fall in a decade in April as the mini-boom that followed the end of the first pandemic lockdown juddered to a halt.

The average price of a London home dropped 2.01 per cent to £491,687 over the month, wiping around £10,000 of its value.

The annual rate of increase is now just 3.3 per cent – the lowest of any region in the country – having fallen from 5.7 per cent in November.

It means that Londonhouse prices have barely moved in four years since they hit an post financial crisis high of £488,527 in July 2017.

However, they are still around double the level of prices for the UK as a whole.

London rises have been lagging the rest of the country this year, in part because of a “race for space” that has seen buyers swap city flats for suburban and country houses with outdoor space and room to create a “work from home” study.

Further slowdowns are expected as the stamp duty holiday ends in June and three million workers come off the furlough scheme in the autumn.

Jonathan Hopper, chief executive of buying agency of buying agency Garrington Property Finders, said:

The pace of price growth is starting to ease off as buyers become realistic rather than romantic in what they’re willing to pay.

“Coupled with a gentle improvement in supply as more sellers put their home on the market, this reality check has blown some of the froth off the market.

“Given that annual price rises had hit double-figures in the most in-demand coastal and rural locations, this slight cooling in price inflation is welcome.

Blog Post from Evening Standard

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