According to Rightmove’s latest index, asking prices in more than half of London’s boroughs fell in June, and for the first time since December 2006, average property asking prices in the capital are no longer outperforming the rest of the country.

Miles Shipside, Rightmove’s commercial director, said: “The gap between house prices in London and the rest of the UK is getting narrower. Seventeen out of 32 boroughs saw falls. We expect to see this drop continue over the next few months.”

Liam Bailey, head of residential research at Knight Frank, said: “The market may well be close to its peak in London. A slight shift in demand and supply is beginning to emerge. It indicates a move away from a seller’s to a buyer’s market. Since March, however, there has been a noticeable slow-down, with the number of new applicants registering for properties down by 30% compared to recent months.”