A slowdown at the top of the market was not enough to stop London house prices experiencing their biggest increase this month, according to a leading estate agent. 

A survey of 1,500 households across the UK showed 25.1 per cent saying the value of their home had risen over the last month, while four per cent said it had fallen. This resulted in a house price sentiment index reading of 60.5 – the 36th consecutive month the reading has been above 50.

Although growth among top-notch London properties has been stalling on stamp duty changes and Brexit fears, Londoners perceived the biggest increase, followed by those in the south-east, east of England, Scotland and then the north-west.

However, Tim Moore, a senior economist at Markit, says there could be trouble ahead.

"Households' current price sentiment is stronger now than at any time over the past 17 months, but the economic landscape is not lacking in potential headwinds for buyer confidence," he told City AM.

"In particular, UK pay growth is uneven at best and slowing at worst, while at the same time some lenders have started to lower their maximum loan-to-income ratios."

However, estate agent Knight Frank, which commissioned the survey, remains upbeat. "The fundamentals for the UK housing market remain steady, especially around mortgage costs which remain at record lows," Grainne Gilmore, the head of UK residential research, said.

“The imbalance between demand and supply of housing is also underpinning house prices. The delivery of new homes remains some 30 to 40 per cent below the levels needed to start to address the annual shortfall of housing in the UK."

www.theweek.co.uk