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House prices cool as London dip continues
House prices in London have fallen for the second consecutive month after a nine-year streak of increases, according to data from the UK Office for National Statistics (ONS) released on Wednesday.
The data also showed that average house prices in the UK decreased by 0.2% month on month in March, while in London they fell at an annual pace of 0.7%, with ONS linking the decline in London prices to reforms to stamp duty and the Brexit vote.
Net migration to the city has fallen as foreign buyers are deterred by the persistent uncertainty surrounding the UK's exit from the EU.
In a blog post for ONS, Kishan Rana said: "With the referendum and subsequent uncertainty regarding Britain's political and economic environment, perceptions of the future value of London property have been adversely affected. This is what you might call a fall in 'speculative demand'."
In the 12 months prior to the end of March, London was the only English region to suffer a decrease in house prices, in what was the city's worst performance since a 3.2% year-on-year slump in September 2009.
Annual growth in nationwide house prices continues to slip too, as the UK saw an increase of 4.2%, a drop from the 4.4% growth rate seen in February.
The East of England showed the highest annual growth, with prices increasing by 5.8% over the last 12 months, followed closely by the East Midlands which saw growth of 5.6%.