The rocketing prices for property in London may be stabilising, according to Government figures.
The annual rate of house price growth fell to 19.3% in the year to June, down from a record high of 20% in May.
Over-inflated prices and the new stricter criteria to obtain mortgages resulting from the Mortgage Market Review offer a partial explanation for the stabilisation.
Demand for property has declined at the same time as the number of houses coming onto the market has increased. This has helped freeze galloping prices.
Another element is the anticipation many potential buyers have of an increase in interest rates in the near future from their historic low.
The average house in London cost £499,000 in June, putting many houses right up to the edge of the 4% stamp duty mark of £500,001, according to the Office of National Statistics.
