Prime London price growth falling back

House prices in central London are now rising at their slowest rate for two years as the housing market continues to cool, Knight Frank has said.

Prices rose by 0.3 per cent over October, well below the rises of over three per cent seen in the summer months that were always going to be "unsustainable", according to the firm's prime central London house price index.

Knight Frank analyst Liam Bailey noted that the market was now slanted in favour of buyers, a suggestion similar to those made in recent weeks by other observers regarding the wider UK market.

"We have seen a sellers market replaced very quickly by a buyers market. The new market sentiment means that vendors are having to compete much harder to achieve timely sales and ambitious pricing has effectively ended across the prime and mainstream markets," Mr Bailey confirmed.

UK price growth did pick up slightly in October, according to the latest Nationwide house price index, rising by 1.1 per cent on the month.

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