"The rise in transactions in August and strong regional performance highlights a monthly slowdown of prices in the capital."
In terms of transactions, there were an estimated 80,500 sales completed - an increase of 5% compared to July’s total, and up 6% on a seasonally adjusted basis.
However house prices remain 2.1% higher than this time last year, when the average price was £5,982 lower.
Annual increases peaked in February 2016 at 9.1%, with both London and the South East boosting the national house price inflation figure by over 2%. But with the rate of growth in the regions falling steadily over the year, by February 2017, the national figures were stronger without the two regions included.
Today, at 0.7%, London has the lowest house price increases of any region, while other areas such as the East of England (up 5.5%) have continued to rise strongly.
Prices in the East of England are still some way off the levels in London, but they’re closing the gap with the South East, where the average price is £369,095 and growth in the last year has been less than half the rate in the East, at 2.5%. Since price growth began to slow in February, the gap between average prices in the two regions has fallen by a fifth from £54,786 to £43,479.
When it comes to transactions, Wales is leading the way: eight of the ten top spots in terms of the areas with the highest increase in property sales between the periods of May-July 2016 and May-July 2017 are all located in the country.
Oliver Blake, Managing Director of Your Move and Reeds Rains estate agents, said: “We’re seeing a balanced market this year. Regions like the East of England are closing the gap on the traditionally stronger performers like the South East as first time buyers drive growth in search of more affordable housing.
“The rise in transactions in August and strong regional performance highlights a monthly slowdown of prices in the capital. However, on an annual basis, London’s boroughs, particularly those in the south east, are continuing to show steady growth.”
