London Property Prices Increase

London property prices have increased by a fraction this month, new figures suggest.

Data from mortgage lender Nationwide shows that average house prices rose by 0.1 per cent in September, after a fall of 0.8 per cent in August.

The increase goes against an expected third monthly successive decline predicted by property experts.

The annual rate of house price growth slowed from 3.9 per cent to 3.1 per cent however, while prices fell on a quarterly basis for the first time since May 2009.

Nationwide said that the extent to which property prices decline depends on whether or not the increase in the number of new sellers since May has been driven more by speculative sellers who would later withdraw from the market.

Martin Gahbauer, chief economist at Nationwide, said: "Where house prices go next will depend on whether the strong flow of new property onto the market continues into the autumn."

He added that UK and London property prices will also depend on the extent to which existing sellers are willing to compromise on their asking price in order to make a quicker sale.