"Even in London, where an average increase was recorded over the month, homes in most boroughs are significantly cheaper in real terms than they were this time last year."
Annual price increases remain steady, holding at 1.8% for the third month in a row, but below the 3.8% recorded in January and 4.5% last August.
The 1.8% increase is significantly below CPI inflation of 2.3%, meaning real-term falls, however every region continues to show nominal increases in annual prices.
London posted an annual price increase of 3.6% in July, while the West Midlands, East Midlands and North East also continue to record rises above inflation. The South East, where growth is weakest, nevertheless saw its annual growth increase in July, bucking the trend nationwide.
Broadly, though, the market is flat across regions, and transactions are low – down 0.1% in August and 4% annually - their lowest in five years.
Oliver Blake, managing director of Your Move and Reeds Rains, said: “The slower market should help ease the affordability challenge faced by many buyers. Even in London, where an average increase was recorded over the month, homes in most boroughs are significantly cheaper in real terms than they were this time last year.”
