The latest house asking price index from Rightmove showed that London remains one of the most attractive areas of the UK for landlords with buy-to-let investors looking for strong returns on their investment.

The potential for capital appreciation is stronger in the capital than anywhere else, according to Rightmove, with house asking prices in London having risen by 2.3% in November.

This compares with an overall fall of 0.7% in England and Wales, with the firm suggesting that constricted supply is playing an important role in ensuring that London’s housing market remains healthy.

Miles Shipside, commercial director at Rightmove, said: “Whilst bargain hunters will be paying less for these properties, prices will rise where demand continues to outstrip supply in quality areas close to major conurbations, especially London.”