Seasonal slowdown in house prices

Andy Knee, chief executive of LMS, has commented on the latest Land Registry house price index for England and Wales.

He said: “From a 1.7% month-on-month increase in average house prices from June to July 2015, the latest land registry data shows a less weighty increase of just 0.5% from July to August, an indication of a seasonal slowdown after a busy summer. The impact of highly volatile global capital markets, as well as the announcement of a likely base rate rise in the future, can also be felt across the UK housing market.

“London property continues to thrive however, and the imbalance in house prices between various regions means buyers in London and its commuter belt have been dealt the worst hand of all. With a monthly increase of 1.7%, and an annual change of 6.6%, prices in London and surrounding areas are well above national averages, resulting in a huge gap between other regional cities and the capital; the biggest in 20 years.

“While the promise of extra housing is encouraging, and targets for building are a much-needed step, the government needs a far more stringent and cohesive approach to housing to tackle the problem head-on.”