London house prices: average property price in the capital falls for 17th month in a row as Brexit uncertainty continues

London house prices have fallen for the 17th month in succession as Brexit uncertainty continues to cast a pall over the property market.

The average cost of a home in the capital dropped 1.4 per cent to £477,813 in the year to July, according to latest data from the Land Registry. Prices in London last saw a year on year rise in February 2018.

The number of flats and houses changing hands in London has also fallen again. Just 5,917 homes were sold in May, the last month for which figures have been released, down from 6,980 in the same month last year.

David Westgate, chief executive at estate agency Andrews Property Group, said: “We have been in a slow correction since the EU referendum result but that’s not necessarily a bad thing for the market in the long term. It had got ahead of itself, especially in London and the South East.”

Prices in the commuter belt are now falling more rapidly than in London, reversing the trend earlier in the downturn when they continued to hold. Across the South East region prices were down two per cent.

Today’s Land Registry figures comes after property website Rightmove said UK house prices dipped 0.2 per cent in September, the first drop in a month that normally sees a pickup after the the summer lull since 2010.

On the high street the headline rate of inflation fell more sharply than expected to 1.7 per cent.

This was the lowest rate of inflation since November 2016 and steeper than analysts predicted, having forecast inflation of 1.9 per cent.

Mike Hardie, head of inflation at the Office for National Statistics, said: “The inflation rate has fallen noticeably into August, to its lowest since late 2016. “This was mainly driven by a decrease in computer game prices, plus clothing prices rising by less than last year after the end of the summer sales.”