London losing house price crown

London house prices have fallen in the past year

The gap between house prices in London and the rest of the UK has shrunk to its lowest level in nearly eight years, research from Halifax bank has shown.

Prices in London are nearly one-and-a- half times the national average compared to two times in 2001.

While prices in the capital fell during the past year they rose sharply in the north of England, Scotland and Wales.

In fact, all 10 towns recording the biggest price rises in the last year were outside the south-east of England.

There continues to be a distinct north-south divide with more subdued, or falling prices, across southern England Halifax

Risers and fallers

Irvine in Strathclyde has seen prices rise by 44% in the past year, the biggest percentage increase in the UK.

Talbot in West Glamorgan, Motherwell in Strathclyde, Glenrothes in Fife and Blackwood in Gwent all saw average annual house growth of more than 35%.

At a county level, County Fermanagh in Northern Ireland saw the biggest price rises, followed by the Highlands in Scotland.

"Although the slowdown in house price inflation over the past year has been broadly based, there continues to be a distinct north-south divide with more subdued, or falling prices, across southern England," Martin Ellis, Halifax chief economist, said.

"As a result, the gap between prices in London and the rest of the UK has fallen to its lowest for eight years."