Experts are warning the London property bubble may be on the verge of bursting as house prices in the capital dropped 8.4 per cent in the last quarter.
The average inner London house price fell to £761,000 over the past three months.
Meanwhile, average house prices across the UK as a whole eased of 1.9 per cent to £293,000. But nationwide prices are still 1.5 per cent higher than a year ago.
The number of transactions is up 15.2 per cent from last year, according to the TwentyCi Property & Homemover Report.
Twenty Ci chief customer officer Colin Bradshaw says: “The fall in prices may be a side effect of Brexit, which is likely to have had more impact on London as an international market. However, the positive outlook across the UK suggests volatility is subsiding as people experience Brexit fatigue and get on with their lives.”
Independent property market analyst Kate Faulkner says falling prices are not a surprise after double digit annual growth.
“This, together with last year’s Brexit shock reducing confidence in the short-term, is likely to be the reason why exchanges are up despite a slower market,” she explains.
Scotland and Wales saw the greatest leap in exchanges, up 30 per cent year-on-year. The number of exchanges in the south west, however, was 6 per cent lower than a year ago.
Research by TwentyCi shows the greatest increase in exchanges came from those homemovers aged 66 and over and those in a higher price bracket.
Faulkner adds: “In a less active market we also tend to see buyers and sellers are more serious and less voyeuristic. It will be interesting to see if this is still the case next quarter, or if we end the year with slower growth and fewer transactions.”