House prices in London: new figures reveal average sold prices have fallen at the fastest rate since 2009

House prices in London have fallen at the fastest rate since the effects of the financial crisis took hold in August 2009, according to new figures released today.

The Office for National Statistics (ONS) has revealed a 4.4 per cent drop in the year to May, with the average sold price of a home in the capital now standing at £457,471. The dramatic plunge has wiped £21,000 off average prices in the capital and is the 15th consecutive month of year-on-year falls.

In the previous month of April, prices dropped by a comparatively modest 1.7 per cent in the same 12-month period.

The data relates to properties purchased in the early months of the year, amid a backdrop of ongoing political turmoil and Brexit uncertainty.

Nationally, house prices rose by 1.2 per cent in the year to May, to £229,431, down from 1.5 per cent in the year to April.

"This reduction is largely being driven by price falls in London which tends to feel the impact of political unrest more acutely than other regions of the UK," says Paul Smith, CEO of haart estate agents.

"As we edge ever closer towards the October 31 deadline, and indeed the prospect of a potential no deal scenario, we can perhaps expect a further decline to London house prices over coming months, but thereafter more positive headlines."

Two London boroughs saw huge falls, with prices down by £51,267 (9.6 per cent) in Barnet and by £66,432 (8.3 per cent) in the City of London.

Significant falls were also seen in the boroughs of Southwark (5.8 per cent), Kingston-upon-Thames (5.6 per cent), Islington (5.5 per cent) and Harrow (5.4 per cent).

Just seven of London's 33 boroughs saw an increase in average sold prices in the past 12 months. In north London, prices in Haringey were up by more than £33,000 following a 6.1 per cent boost in the year to May. The east London borough of Hackney saw similar growth, with values up by 5.7 per cent.

Newham, Barking and Dagenham, Hounslow, Waltham Forest and Brent also recorded positive growth amid the sharp falls seen across the rest of the capital.