House prices in London experienced a faster decline last month, with the average price falling by 2.2 per cent to £531,548 in the year to September. This marks a larger drop compared to the 1.5 per cent fall recorded in August, according to the Lloyds house price index.
The capital's property market continues to be affected by a slowdown attributed to the Iran war. London's house price slump was closely followed by the South East, where prices decreased by 2.1 per cent year-on-year to £380,829. In eastern England, the average house value saw a 1.6 per cent fall to £330,151.
Across the UK, house prices remained unchanged in September, both month-on-month and year-on-year. This represents an improvement from the 0.3 per cent drop in values seen last month.
Andrew Asaam, mortgages director at Lloyds, described the UK's property market as still "subdued," despite average house prices avoiding another drop. Mortgage rates have risen since February, with the average five-year mortgage rate surpassing six per cent for the first time in three years earlier this week.