The Land Registry’s October data shows an annual price increase of 5.6% which takes the average property value in England and Wales to £186,350. Monthly house prices up 0.4% since September 2015.
The regional data indicates that London experienced the most significant annual price increase with a movement of 10.6%, while the North East experienced the greatest monthly growth with a movement of 1.9%.
Yorkshire and The Humber saw the lowest annual price growth with an increase of 1.4% and the area also saw the most significant monthly price fall with a decrease of 1.8%.
Jonathan Hopper, managing director of buying agents Garrington Property Finders, said: “London property is once again making money faster than most of its inhabitants can earn it. With the average home in the capital jumping in value by more than £3,400 in a month, it’s no wonder salaries can’t keep up.
“Transactions in London are down by a fifth in a year, and squeezed supply has sent annual price growth rocketing back into double digits. The drop in sales is particularly acute in the £1.5m to £2m price bracket that was hit so hard by last year’s rise in stamp duty – transactions are down by more than a third as buyers balk at the likely tax bill and would-be sellers hold off.
“This week the Chancellor announced a raft of incentives designed to get Britain building more homes. With the shortage of supply now endemic in several areas, these measures can’t come quickly enough.
“With consumer prices still falling and the Bank of England in no hurry to raise interest rates, the cost of borrowing will stay low and buyer confidence high well into 2016.
“Together these factors will continue to stoke demand well beyond what current supply can meet. The inevitable result is continued inflationary pressure.”
Sales and repossessions during August 2015, the most up-to-date figures available, show that the number of completed house sales in England & Wales decreased by 15% to 74,596 compared with 87,895 in August 2014.
The number of properties sold in England and Wales for over £1 million decreased by 13% to 1,280 from 1,473 a year earlier.
Repossessions in England and Wales decreased by 54% to 376 compared with 826 in August 2014, while the region with the greatest fall in the number of repossession sales was Yorkshire and The Humber.