The torrid pace of growth within the UK housing market has hit a speed bump. According to the latest data, house prices grew at the slow rate of 5.5% during the month of April. This is in comparison with the high rate of 9.6% during the month of March. It was the biggest slowdown in growth since the month of April, 2006. The reason for the market hitting the brakes is weakening of the property market in London. Prices in the capital city have leveled off after growing at an above average rate during the last few months.

The market began weakening overall before the start of the New Year, and more specifically, during the month of October last year. Prices prior to that were increasing at an alarming rate. The trend quickly slowed as the general election came into view.

The ONS commented on the current state of the market, saying: “The UK housing market showed signs of easing in April 2015. One of the largest drivers of this fall was the sharp weakening in London annual house price growth, where house prices grew at a slower annual rate than the UK average for the first time since February 2006.”

The ONS continued, saying: “Broader economic indicators suggest that the economy continued to grow relatively strongly during the first quarter of 2015, which may in turn feed into consumer expectations of the housing market.

As the market shows signs of weakening through house prices, remortgage activity is expected to grow as the strongest portion of the selling season is quickly approaching.