London House Prices Increase 0.8% as U.K. Declines Amid Slowdown

Asking prices for London homes barely rose this month and values across the U.K. declined as the property market paused for breath, according to Rightmove Plc.

Prices sought in the capital increased 0.8 percent from October, when they surged 7 percent, to a record 601,180 pounds ($940,000), the property website said today. Across England and Wales, they fell 1.7 percent ahead of the seasonal winter slowdown, Rightmove said.

The report adds to evidence of a loss of momentum as record prices and speculation about a so-called mansion tax curb demand, particularly in London where values are more than double the national average. Supply shortages in some parts of the country could push prices up again in 2015, Rightmove said.

“Affordability and politics are intervening to slow down both the pace of price growth and average selling time” in London, said Miles Shipside, a director at Rightmove. A mini-boom in much of the country “has hit the pause rather than the stop button” and “underlying demand remains strong,” he said.

Of the 10 regions tracked by Rightmove, only London and East Anglia posted gains on the month. Declines were led by southwest England and the north, where values fell 3.9 percent and 3.6 percent, respectively.

London’s increase this month took the gain from a year earlier to 16.2 percent. Across England and Wales, prices were up an annual 8.5 percent, compared with 7.6 percent in October.

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