Average house price growth is slowing and is now just a third of what it was this time last year according to LSL Property Services, parent group of high street chains like Reeds Rain and Your Move.
The average house prices in England and Wales is £277,178 which is just 0.4 per cent up on a month ago.
The firm says this small rise is despite a dramatic collapse in the number of sales - some 14 per cent fewer in May than a year earlier.
“On a monthly basis, London house prices have dropped for the third successive month since the start of the year. It is the higher-priced boroughs which have seen the biggest price falls, as a side effect of costlier stamp duty on top-end properties” says Adrian Gill, director of Reeds Rains and Your Move.
He says values in Kensington and Chelsea – the most expensive London borough – have dropped 6.0 per cent in the past year and are now 16 per cent below their peak in September 2014.
“Home sales in London have dropped 16 per cent year-on-year in the three months to April 2015 – the most significant drop-off of all regions” he admits.
However, he claims completed house sales across all of England and Wales rose 10 per cent in May “but this still represents a 14 per cent drop compared to a year ago.”