House prices fall in London – but rents soar 20% in revenue boost for Foxtons

Demand for rented homes will continue to outstrip supply in overheated capital

Annual house price growth stood at 2.1% in February for the third month in a row, according to Halifax (PA)

Average house prices in London have fallen by 0.9 per cent over the past year, Halifax said – but agents Foxtons said a squeeze in demand has sent rents soaring by 20 per cent.

Across the UK, property values increased by 1.1 per cent month on month in February, accelerating from 0.2 per cent growth in January, Halifax said. The average UK house price in February was £285,476.

Northern Ireland, West Midlands and Yorkshire and Humber saw the largest annual percentage rises.