Affordable property drives growth as London slows
- House prices continue to grow
- Cheaper London boroughs continue to surge
- Luton, with average prices up 15.6%, and the East more widely, continue to top the tables for growth
House prices continued to grow in August - although at a slower rate than in previous months - with average house prices now standing at £292,921 meaning the average homeowner is sitting on £12,101 more equity than this time last year.
Transaction levels present a mixed picture: although activity in England & Wales was lower than seen at this time last year, levels in August were up 2.6% on July. It is estimated that there were 78,000 housing transactions in August, with levels now closely tracking those of 2013 for the last three months.
Both price and transactions 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. 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.
Source: LSL Property Services/ Acadata England & Wales House Price Index, August 2016