The housing market has suffered its lowest price growth for over six years amid political and economic uncertainty surrounding Brexit. Figures show that overall price growth across the UK was only 1.2 per cent which was the joint-lowest level since 2013.
London house pricing saw the most significant drops in value as Land Registry data showed a fall of 4.4 percent year on year to an average value of £457,000. The capital's housing market has been driving the slowdown in UK house price growth as detached homes in London have dropped in value by more than £50,000, according to figures.
The North East was the only other region to see a drop in average house values, however other regions saw growth of up to 3.4 percent. Across the UK, prices have risen on average by 1.2 percent to a mean value of £229,000.
Managing director of property agency Garrington Property Finders, Jonathan Hopper said: "Such a punishing drop in London house prices is a reminder that the capital's correction is still underway."
He added: "The scale of London's fall – the largest seen since the recessionary plunge of almost a decade ago – is also a reminder of the definitive shift in the dynamic in the capital.
"Buyers are now setting the tempo, dictating terms in price negotiations and frequently able to secure additional discounts on properties that are already reduced."
Samuel Tombs, of Pantheon Macroeconomics, believes that the decline in London house prices also "reflects the slowdown in net migration, a glut of new-build flats and valuations correcting from excessively stretched levels", he said.
Over the last three years the house price growth seen a reduction in year on year growth and the decline of the housing market has been attributed to recent political uncertainty. Stamp duty and other tax changes have been cited as reasons for the slowdown in the housing marketing, although Brexit is said to have been a significant and influencing factor.