Annual house price growth has continued to stutter and hit a four-month low last month, Nationwide says.

The latest Nationwide House Price Index found property values grew by 0.5% annually in June – the slowest rate since a 0.4% reading in February – to £216,515.

It is down from 0.6% in May and also the seventh consecutive month that growth has been below 1%.

Much of the slowdown came from poor performance in London and the south-east where prices have fallen 3.8% and 1.1% respectively

In contrast, house price growth across northern England  – encompassing the north, north-west, Yorkshire & Humberside, and east and west Midlands – averaged 2.1%.

Robert Gardner, chief economist for Nationwide, said: “Survey data suggests that new buyer enquiries and consumer confidence have remained subdued in recent months. Nevertheless, indicators of housing market activity, such as the number of mortgages approved for house purchase, have remained broadly stable.

“Housing market trends are likely to continue to mirror developments in the broader economy.

“While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months.”

Commenting on the data, Iain McKenzie, chief executive of The Guild of Property Professionals, said: “Political and economic uncertainty has weighed on London and the south-east more heavily than other regions which, along with high buying costs and affordability constraints, has made the capital’s housing market extremely price sensitive.

“The outcome is that buyers are now self-regulating in terms of price, and this has resulted in the London market finally re-aligning to what buyers are prepared to pay, meaning those properties priced sensibly are selling quickly.

“Brexit is a strong consideration for those living in London and the south-east, but the effects have not been as widely felt in the north, midlands and west country, where house prices in many parts continued to rise throughout 2018.”

The London malaise was reflected in data from Knight Frank.

Its data on prime central London (PCL) prices showed average values have fallen 4.9% annually and declined by 4.1% in prime areas outside of the centre.

The number of transactions for more than £10m fell 3.6% in PCL in the year to May, declining by 11.5% for those worth between £1m and £2m.

Knight Frank said exchange rate and property price changes meant US buyers were now getting a 24.7% discount in London.

Daniel Daggers, a partner in Knight Frank’s London super prime department, said: “In an increasingly interconnected world, the UK is becoming more attractive to US buyers, partially in credit to the discount offered to them.

“Those Americans who have spent the majority of their years exploring what north America has to offer, now have a fantastic excuse to base themselves out of London and explore the rest of the world.”