Buyers were asked to pay marginally more for London property in July than they were in June.

The latest figures from Rightmove’s House Price Index indicate a 0.2% rise in the amounts sellers were demanding in the capital.

However, the inner and outer London markets performed very differently with a 0.9% fall for inner boroughs compared with a 1.6% rise in outlying areas.

Rightmove director and housing market analyst Miles Shipside said: “Stretched affordability is acute in nearly all market sectors in London, but the lower-end sector with up to two bedrooms has high demand from first-time buyers, down-sizers and investors.

“It tends to be solid and consistent demand rather than the ebbs and flows of the upper-end internationally influenced market which is more affected by wider political and economic forces.

“It looks like demand remains strong for properties in with two bedrooms or fewer.”

Overall London saw a 7.8% rise in asking prices for the year to July.

Rightmove said prospective sellers, especially in the upper price brackets, typically held back from marketing their assets during the summer months, causing a pause in upward price pressure.

Miles said: “Top-end sellers have a propensity to prioritise the more certain excitement of summer holidays over the potential excitement or perhaps disruption of putting their property up for sale at this time of year.

“The fall in inner London prices is also a likely reflection of the slower market in more expensive areas, with demand moving outwards with more affordable prices.”