Data from Halifax show that the average cost of a home in London dropped by £11,073 from £541,472 to £530,396 in January compared with December.Kim Kinnaird, director, Halifax Mortgages, said: “We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years. As we move through 2023, that trend is likely to continue as higher borrowing costs lead to reduced demand.