Affordable property is driving price growth in England and Wales but the market in London has slowed, according to the latest house price index report.
Overall house prices continued to grow in August but at a slower rate than previous months with prices up 0.1% compared to July, taking the average to £292,921, the data from the LSL Property Services/Acadata index.
Year on year prices in England and Wales were up by 4.3% but this falls slightly to 4.1% when London and the South East are excluded from the calculation.
Overall sales activity in England and Wales was lower than seen at this time last year but up 2.6% month on month and the report suggests that both price and sales are recovering from a slump following the spike ahead of the 3% stamp duty surcharge introduced on second homes and buy to let properties in April 2016.
It explains that following a big increase in March as people rushed to beat the rise and a sharp crash in April, prices have settled. They continue to grow slowly, just slightly below the trend before the change. Transactions, too, have followed a similar pattern.
In London the market is slowing but cheaper London boroughs continue to surge. These include Lewisham with growth of 18.7%, Barking and Dagenham up 18%, Waltham Forest up 16.3% and Bexley up 16%. This compares with an average annual price rise of 4.6% in London as a whole.
This pattern is being repeated more widely, with more affordable areas across the country performing well. Average growth for England and Wales is 5.3% but Luton has seen growth of 15.6%, Slough 14.6% and Thurrock 14.3%.
‘The new market data shows us once again that there is no single housing market but the sentiment, we believe, remains singularly positive. There is demand for affordable property and there are people who, bearing in mind the transaction volumes recorded, have the appetite to make a move,’ said Adrian Gill, director of Your Move and Reeds Rains estate agents.
‘To maintain this momentum, however, it will be necessary for the government to provide continued support to consumers, house builders and the property industry as a whole and ultimately ensure that there are enough houses and finance available to help people realise their dreams of home ownership,’ he explained.
‘Whether this will come when the Autumn Statement is announced is yet to be seen but no doubt many will hope it is yet again strongly positioned on the political agenda,’ he added.
