House prices in London:pace of price falls slow in the capital while buyer demand fuels growth in the North of England

The collapse in London’s property market is showing tentative signs of slowing, according to new research by Rightmove.

Over the past year to June, asking prices across London fell by two per cent, which is the smallest decline measured since January and an improvement on the 3.8 per cent decrease recorded in March.

The slight upswing is thanks to higher numbers of first-time buyers taking advantage of low mortgage rates and the market slowdown.

However, despite continual falls, the average asking price for a home in the capital still currently stands at £618,880, almost double the average of the rest of the country.

Outside London, record price growth in the active regional markets of East Midlands, North West, Wales, Yorkshire & the Humber helped to push the national average to £309,348. This is just £91 away from the market peak seen a year ago, with high levels of buyer demand nudging up prices in these regions.

The London overview

In London's most central — and most expensive areas — the average cost rose to £763,000, while in suburban areas, homes hit an average asking price of £516,000.  

Homes in travel Zone 3 were the star performers ⁠— relatively speaking ⁠— with average asking prices up by 0.5 per cent over the past year. All other travel zones showed annual price drops.