The pace of U.K. house price growth slipped again in September, according to the latest figures from Halifax, but many in the industry are predicting a surge in foreign buyers as sterling continues to sink lower.
Price growth in the country fell to 5.8 percent last month from 6.9 percent in August,on the three month seasonally-adjusted average basis used by U.K. lender Halifax as its key data point. This compares to a 9.0 percent average for this metric over the preceding 12 months.
Although Halifax does not publish a breakdown of regional growth rates, Martin Ellis, Halifax housing economist,shared some thoughts on the U.K. capital with CNBC via email, saying: "The London market is cooling following a prolonged period of strong house price growth. The rapid rise in property values has resulted in increasing challenges for those looking to buy a home in the capital."
"This is constraining demand, which is reducing price growth and activity levels. We expect to see a lengthy period of relatively modest house price rises in London, allowing incomes to stabilize and help improve affordability in the capital," he added.
Meanwhile, data released by building society Nationwide last Friday indicated a sharp pullback in growth rates for house prices in London.
Having sat atop the list of fastest growing regions for almost all of the past five years until this March, the U.K.'s capital is now only the fourth fastest growing region and saw its annual growth rate slide to 7.1 percent from 9.9 percent in the second quarter.