London house prices on the slide?

House prices in London, which have been driving the recent resurgence in property values, could be on the slide.

The latest figures from the Land Registry, which monitors the sale price of every home in England and Wales, show that in November the average price of properties in the capital fell 0.6 per cent.

This is the first time in six months house prices have performed worse in London than in the rest of the country.

Land Registry figures reveal in November house prices fell 0.6 per cent in the capital, but this drop did not wipe out London's recent over performance.

The average London property is now worth £304,912, some 7.8 per cent higher than last year. Only properties in the east of England, where prices are up eight per cent, have performed better in the last 12 months.

Nationally, house prices in November were 6.8 per cent higher than 12 months previously, with the average property costing £172,006.

"House prices in England and Wales have continued to rise steadily," the Land Registry said in a statement.

"After robust growth in September and October, the November monthly growth rate reflects a calmer market.

"However, the growth rate remains firmly positive. The November monthly growth rate of 0.6 per cent is approximately twice the size of the average monthly growth in 2005."

On a local level, Neath Port Talbot had the highest annual house price change, rising 13.1 per cent in the last year, by contrast in the City of Nottingham house prices fell 1.3 per cent in the last 12 months.

There were also large variations in house price performance within London, where property values in Hammersmith and Fulham rose 15.1 per cent in a year while the average house price in Barking and Dagenham rose just 2.9 per cent in the same period.