London house prices are far behind the rest of the UK in house price growth during the second quarter in recently disclosed data. London has been in the front slot for several years running, but now finds itself trailing far behind, according to recent figures from Nationwide. House price growth is at its weakest growth rate in five years. In the second quarter alone, East Anglia is up more than 4.5% in year on year comparison.

House price growth has slowed in many regions of the country, but London has seemed to always be the exception to the rule. House prices in London remain more than 55% higher than they were during the 2007 economic crisis. Several factors are believed to be the cause of the low amount of price growth currently, including overall affordability and higher stamp duty which resides in the capital city.

Nationwide economist Robert Gardner commented on the latest data, saying: “Price growth in the south of England has moderated, converging with the rates prevailing in the rest of the country.”

Gardner added: “Given the ongoing uncertainties around the UK’s future trading arrangements, the economic outlook remains unusually uncertain, and housing market trends will depend crucially on developments in the wider economy.

“In our view, household spending is likely to slow in the quarters ahead, along with the wider economy, as rising inflation squeezes household budgets. This, together with ongoing housing affordability pressures in key parts of the country, is likely to exert a drag on housing market activity and house price growth in the quarters ahead.”