The pace of house price growth is beginning to slow in some London neighbourhoods, indicating that the more subdued mood discernible for some weeks in other parts of the UK is now spreading to the formerly irrepressible capital.

The June index of asking prices from Rightmove, the website, shows month-on-month falls of 1.7 to 2.8 per cent in the boroughs of Haringey, Hounslow, Lambeth, Southwark and Tower Hamlets, with buyers cowed by more expensive borrowing. Since May, prices have progressed by 0.7 per cent in Greater London, lower than the national average of 0.8 per cent. But the average asking price in London is still 23 per cent higher than a year ago - up from £315,224 to £387,898. The nationwide increase is 13.2 per cent, up from £211,442 to £239,317.

Rightmove’s statistics also suggest that exuberance persists in such metropolitan locations as Camden, up 7.4 per cent since May, Richmond-upon-Thames (up 3.9 per cent) and Kensington and Chelsea (up 3.4 per cent). This confirms research from other sources highlighting the continued strength of the smarter postcodes - hot spots where most buyers are less preoccupied by the increases in interest rates and the threat of more to come. Data from Knight Frank reveals that prime central London prices have been rising at three times the rate of the wider UK market.

A paucity of properties for sale is still the key feature of the prime London market. But Rightmove reports that elsewhere, estate agents now have more properties to sell, after a period when stocks were low; last week the Royal Institution of Chartered Surveyors (RICS) said that 39 per cent more of its members had received new instructions.

This boost to supply was spurred by sellers hurrying to put their homes on the market before June 1, the original launch date for home information packs (Hips). Following a Government climbdown in late May, however, the implementation of this reform to the housebuying process was postponed until August 1 when it will apply only to four-bedroomed properties. Even then a loophole in the rules may mean that sellers need not comply with the legislation.

Miles Shipside, Rightmove’s commercial director, notes: “Anyone who sought to save a few hundred pounds by avoiding Hips have contributed to a glut of property which will actually cost them money as they will have to discount their properties to sell.”

The desire to save on the £300-£600 cost of a Hip may have resulted in a rash of new For Sale boards. But Mr Shipside does not expect a stampede of overextended owners, unable to bear the pressure of rate rises, rushing to put their homes on the market. He says: ”The lack of forced sales means prices overall are unlikely to fall back much from these record levels.”

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