A slowdown in the rate of house price growth has been reported in Richmond, suggesting wider economic woes and higher mortgage rates may finally be cooling the market.

The average annual increase in the sale price of properties in the borough was 8.8% in the year to May, which is lower than the figure of 13.4% in April.

Richmond has been at the forefront of an overheating housing market through 2022, adding tens of thousands of pounds to average sale prices.

While the increase of 8.8% represents a slowing in the rate of increase, average sale prices are still significantly ahead of a year ago at £754,011 – up £61,060.

Looking at property types, the official figures show the biggest increases in the past year have been linked to large family homes.

The latest annual figures covering May 21-May 22 show –

* Detached – Average sale price £1,697,082 – up 13.9%.

* Semi-detached – Average sale price £1,104,848 – up 11.8%.

* Terraced – Average sale price £862,895 – up 9.8%.

* Flats/maisonettes – Average sale price £493,404 – up 5.3%.

While the official figures from the Office for National Statistics and Land Registry continue to show annual increases, they suggest the market peaked in April and figures are now falling back.

This is demonstrated by the fact that the average sale price across the market for the Richmond Borough in May was down by £20,000 in May versus April.

A report from valuers at the Royal Institution of Chartered Surveyors has picked up a cooling of the property market. Nationally, it said the number of enquiries from new buyers is showing a fall.

Looking ahead, its Head of Government Affairs, UK & Ireland, Jonathan Hale, said: "Regardless of who is set to become the next PM, and indeed how their cabinet will look, housing needs to be prioritised.

"RICS has long called for planning reform and greater deployment of modern methods of construction to support an increase in housing supply."