Over the last five years, the prime London property market has been the place to scoop up investments which would only get hotter. Now, it seems not so much. Signs are surfacing which suggest the market in London is cooling off quickly, according to Land Registry figures. House prices in the capital city are down almost 12% during quarter two of this year, compared with the first. Transactions are also off, falling almost 30% for the year. This is at the lowest level since 2009.

The latest figures from property firm LSL also indicate the indicators are real. Property sales within the city limits of London are down 13% year on year. What is most blatant is the hottest spots are again being affected. Kensington, Chelsea, and Westminster are all suffering the demise.

Foreign investors are also a big part of the story line. What was once a haven for foreign investment has cooled off, and not so much for the environment in London. Foreign currencies are making it less favourable to purchase in the capital city. Even the strength of the ruble is hampering Russian buying ability.

Domestic demand is going to have to take the place of foreign investment, but is not able to completely fill the void. Lifelong Londoners were priced out of the city asking prices long ago. Those who were fortunate enough to join the property ladder will remain, whilst others will likely still be looking for property in outlying areas.

With a certain rise in interest rates, those who are suited for a remortgage are doing so. There are still many attractive deals on the table through major lenders, but they will not be there long.