London house prices fall in February but still ‘double national average’

London house prices fell in February by 0.9% from the previous month, according to the latest property tracking data from Halifax.

The average London dwelling now costs £526,842, down around £3,500 from January’s level of £530,416.

However, properties in the capital remain more than £240,000 higher than the UK average, which currently stands at £285,476.

In contrast to London, the average house price in the UK rose by 1.1% last month, from £282,360 to £285,476.

Halifax suggested that the fall in real estate prices in the capital may be down to the higher proportion of flats on offer, the prices for which are in negative territory year-on-year (down 0.3%).

Terraced house prices have broadly stagnated over the previous 12 months, with the lender finding that their costs have increased by just 0.3%.

The demand for detached properties remains high, however, with asking prices up 1.5% in the last year.

Commenting on the overall market for the UK, Kim Kinnaird, director at Halifax Mortgages, said: “Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December.”

“Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.”

She added: “In cash terms, house prices are down around £8,500 (-2.9%) on the August 2022 peak but remain almost £9,000 above the average prices seen at the start of 2022 and are still above pre-pandemic levels, meaning most sellers will retain price gains made during the pandemic.

“With average house prices remaining high, housing affordability will continue to feel challenging for many buyers.”