London housing has become less attractive for investors as they see limited room for prices to pick up in the U.K.'s expensive capital city, according to analysts.
Brexit and higher taxes to purchase a house have also increased concerns over investment opportunities in London, with investors considering opportunities elsewhere.
"There seems limited scope for price growth in London this year, although outer boroughs that offer a combination of connectivity and affordability will benefit from policies supporting first-time buyers," Tom Sharman, NatWest's head of strategy for Real Estate Finance, told CNBC via email.
According to data from housing market consultancy LSL Acadata, house prices in the central London dropped massively in 2017. In the borough of Southwark, prices dropped 21.1 percent in the year to November, while in the City of Westminster prices dropped 19.4 percent in the same period.
However, the data for each borough is mixed, depending on where it originated from. For instance, real estate services provider CBRE reported that house prices in Southwark actually increased 1 percent throughout 2017.
"One has to be cautious when analyzing pricing data for relatively small areas. These can be quite volatile," Sharman said. "Nonetheless, there are signs that pricing has come off in parts of London over the last year."