London house prices and Brexit: £17,000 wiped off value of a home in the capital as political uncertainty drags on

London house prices have fallen for the 14th month on the trot as Brexit uncertainty continues to overshadow the capital’s moribund property market.

The average cost of a home in the capital was £471,504 in April, down 1.2 per cent from the £477,253 of a year previously, according to latest figures from the Land Registry published today.

The slide means that London’s once red hot market has gone sideways for almost three years since the immediate aftermath of the Referendum in June 2016.

Just over £17,000 has been lopped off the value of an average home since prices peaked in July 2017.

Data from the Land Registry is compiled from prices agreed at completion, usually two or three month before they are officially logged.

This suggest today’s figures reflect the state of the market at the start of the year around the time when Theresa May’s doomed Brexit deal was crushed by a record Commons majority.

Some of the biggest falls were seen in affluent boroughs outside the core centre where foreign investors are starting to return, drawn by the fall in the value of the pound.

Prices in Southwark fell 8.3 per cent to £475,052, while those in Haringey dropped 7.9 per cent to £511,543 and Camden prices were down six per cent at £814,375.

Property commentators said that while the pace of price falls appears to be slowing, there are few signs yet of a return to growth.

Jonathan Hopper, managing director of buying agents Garrington Property Finders, said: “For London sellers there is only respite, not recovery.

"While the pace of price falls has halved from the tear-inducing drop seen in the 12 months to March, this latest 1.2 per cent fall suggests the capital’s correction is still underway.

"The result has been to trigger interest from pragmatic buyers who see value in the capital improving by the month.”

The number of sales also remained depressed as sellers and buyers continue to hold back until the outcome of Brexit becomes clearer.

Just 5,231 deals were completed in February — the latest month for which figures are available — down 18 per cent on the 6,386 recorded by the Land Regstry in the same month of 2018.

Howard Archer, chief economic advisor to forecasters the EY ITEM Club, said the latest figures “do little to change the overall impression that the housing market is still finding life challenging as buyer caution is being reinforced by Brexit, political and economic uncertainties – although there are significant variations across regions with the overall picture being dragged down by the weakness in London and the South East.