Property market slump: London house prices register slowest growth for five years

Land Registry data has shown that growth in London house prices is slowing. Image: Jorge Royan, Wikimedia Commons

House prices in London have grown at their slowest rate for five years, according to the latest figures from the Land Registry.

In the year to February 2017, the average cost of a home in the capital rose just 3.7 % to £474,704.

This marks a considerable change from last year, where double-digit growth was the norm for much of the city.

The borough of Tower Hamlets recorded the greatest slowdown, with prices dropping 2.9 % in a year.

Over the same time period, Brent and Islington registered a decline of 2.3 % and 1.9 % in house prices respectively.

Narrow Street in Tower Hamlets: the London borough has seen the greatest slowdown in property prices. Image: Chmee2, Wikimedia Commons

It would seem obvious to look in the direction of Article 50 in playing the blame game.

Yet the Land Registry data suggests that the sharp increase of stamp duty is more likely the cause.

In addition, Russell Quirk, founder and chief executive of online agents eMoov.co.uk, says that London prices are more likely re-aligning themselves with the rest of the country.

This follows an abnormal level of inflation over the last year.

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