From February 2014 to May 2014 there were an average of 70,029 sales per month, dropping to 61,283 in the same months a year later.
The lack of houses on the market for sale has pushed up monthly house prices, with July seeing a monthly increase of 1.7% - the biggest monthly rise for a year.
The average house price in England and Wales has reached £183,861, while annual price change now stands at 4.6%.
The July data for London shows a monthly increase of 2.5%. At 8.3%, the annual change for London is considerably higher than most other regions. The average price of property in the capital is £488,782 in comparison with the average for England and Wales of £183,861.
However the region with the most significant annual price increase is the East with a movement of 8.9%. The East also experienced the greatest monthly price rise with a movement of 2.8%.
The North East saw the lowest annual price increase of 0.4%, while Wales saw the only monthly price decrease with a fall of 0.3%.
The number of properties sold in England and Wales for over £1 million in May 2015 decreased by 21% to 878 from 1,113 in May 2014.
The number of properties sold in London for over £1 million in May 2015 decreased even further, by 26% to 583 from 783 in May 2014.
John Eastgate, Sales and Marketing Director of OneSavings Bank, commented:
“This is the biggest monthly rise in house prices for a year, driven by positive sentiment continuing post-election and also, arguably, by the lack of houses on the market for sale. The simple fact that demand exceeds supply will continue to push house prices upwards and as long as that is the case, it’s hard to see prices moderating. The mortgage market remains supportive, and low rates aren’t going anywhere. If economic turbulence from China pushes back a base rate rise until late 2016, as it appears to be doing, we may well see even more people capitalise on low mortgage rates to take their first step on the ladder.”
Danny Waters, Chief Executive Officer of Enterprise Finance, said:
“UK house prices are now back where they were before the financial crash and for once it’s not London at the forefont of value growth, but the East region. Sales volumes are down on the equivalent period last year which would suggest that the sounder economic footing the UK now finds itself on has yet to translate into increased activity, but there is still every expectation of a strong second half of the year.
“Rising house prices may be making things difficult for prospective homeowners, but it’s pleasing news for those who have already established a foothold on the property ladder. However, the availability of finance – both in terms of mortgage lending and more specialist types of borrowing – and the attractiveness of the rates on offer offers plenty solace to those looking to access capital.”
Jonathan Hopper, managing director of the buying agents Garrington Property Finders, added:
"For those who view the squeeze on housing supply as a problem for the future, this dramatic jump in month-on-month price inflation will be a wake-up call.
"With the Land Registry showing that transactions continue to fall dramatically, and surveyors reporting the lowest ever number of properties on their books in July, buyers now far outnumber sellers.
"The result of this tension is a rise in prices almost across the board; though the notable exception is the prime property market, which is still reeling from the rise in the top rate of Stamp Duty.
"Mortgages remain cheap and real wages are growing briskly - all of which is stoking buyer confidence and spurring on demand. This month's stock market turmoil - and the deflationary pressure of falling oil prices - mean the Bank of England will be in less of a hurry to raise interest rates.
"So with the cost of borrowing likely to stay low for a while longer, some buyers may be tempted to stretch themselves. But sellers should resist the temptation to see the current constrained supply as a licence to keep increasing asking prices.
"For all their enthusiasm, buyers remain astute and sellers must be wary of letting their pricing ambitions run away from what the market will tolerate.”
