Slide in London house prices

THE great London housing boom is over with property prices in the capital falling for two months running over the summer. The slowdown has spilled over to the South-East, where prices in August fell for the first time this year, according to a survey from property website Rightmove.

The price of an average London home dropped 1.2% in July and a further 0.7% in August, although the decline was confined to detached and semi-detached houses. Terrace house prices stayed level and flats enjoyed further gains.

The picture across London was mixed, with expensive areas favoured by City buyers the hardest hit. Kensington and Chelsea suffered a 2% drop in August, while prices in the more-affordable borough of Barking and Dagenham surged by 3.8%.

The survey is based on asking prices of properties marketed by Rightmove's 2,900 member estate agents - about 30% of all estate agents. The firm said rival figures, including those from Halifax and Nationwide, are about seven weeks behind its data because they are calculated from selling prices.

The national picture shows property values are still rising, but at a much slower pace than in the spring.