The capital experienced the largest reduction in residential property price growth of all the regions in England and Wales in April, according to the latest house price index from LSL Property Services.
It is the first time in 53 months that London has not been top of the leader board in terms of regional house price growth having been overtaken by both south-east England and East Anglia.
Richard Sexton, director of e.surv chartered surveyors, comments: “In the City of Westminster, where the average property is now worth £1.3m, prices dropped 5.2% during the month of March, as pre-election speculation of a mansion tax put a dampener on enthusiasm for the most exclusive London homes.”
LSL also reports that the annual rate of house price inflation has halved over the last eight months from 11.1% in August 2014 to 5.3% in April 2015.
In April, the price paid for a home rose £600 – or 0.2% – when compared with March to push to average price of a residential property in England and Wales up to a record high of £275,961.
This points to the property market cooling, according to LSL, which says residential values rose 0.6% in the month to April 2014.