London house price boom ‘is over’

London house prices fell last month for the first time since February.

The average value dipped 0.2 per cent to £363,802, according to official Land Registry figures.

Prices are now just 5.5 per cent higher than a year ago, although this is still a far better performance than anywhere else in the country.

The figures suggest that the mini-boom that started in the spring of 2009 and has been fuelled by a wave of foreign buyers may be finally running out of steam.

The weakness of the euro has made London property less attractive to European buyers and there are growing concerns about Chancellor George Osborne’s tax grab on properties bought through companies.

The Land Registry figures showed a mixed picture across London, with Kensington and Chelsea — one of the healthiest local property markets in recent years — falling back one per cent to an average of £1.07 million. The biggest monthly increase was in Greenwich, with a 3.2 per cent increase to an average of £273,813.

Property experts said there was still strong demand in hot spots.

Buying agent Gabby Adler said: “In parts of London the competition is hot, with a rise in the use of sealed bids for good properties and four or so buyers often competing for a particularly desirable home. In such a scenario, a property will often get more than the asking price.”