House price data for February 2016 from the Land Registry shows a monthly fall of 0.2%.
However, the February data for London shows a monthly increase of 0.6%. At 13.5%, the annual change for London is considerably higher than most other regions. The average price of property in the capital is now £530,368.
Within London the borough with the highest annual price rise is Hillingdon, with a movement of 17.1%. Hammersmith and Fulham experienced the highest monthly price increase, with a movement of 2.2%.
The Land Registry said that across England and Wales the annual price change now stands at 6.1%. This brings the average house price in England and Wales to £190,275
From September to December 2015 there was an average of 78,778 sales per month. Over the same months a year earlier, the figure was 79,237.
Andrew Bridges, managing director of Stirling Ackroyd, said: “House prices across the country have paused for breath – but London is still dancing to its own tune. In the capital, a steady beat of demand shows no signs of stopping.
“Higher prices aren’t stifling any interest from those living in the capital, even if the mixture of movements is shifting. Not all of London is seeing property prices surges, with the more traditional top of the prime London market much quieter. But this is more than made up for by new, emerging suburbs and the surprisingly affordable parts of central London which still persist.
“As the capital’s population keeps on growing, the London housing market is getting ever warmer and more crowded. This is underpinning solid house price growth for sellers. But for buyers and renters it makes entry to the housing ladder ever more difficult. Hundreds of thousands of new homes are the only real answer. Mayoral candidates are still reluctant to take on such a massive challenge – but if they want to gain entrance to City Hall on election night, they might have to do more to help Londoners enjoy the success of the house price party.”
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Although February’s house prices saw a slight monthly dip, year on year, the cost of property is ever increasing. The gap between house price inflation and earnings continues to grow at a rapid rate, leaving many people unable to climb onto the property ladder and secure a home for their family.
“We need to tackle this ongoing crisis with real action if we are to meet the housing needs of current and future generations. Building at least 250,000 new homes a year is a must, but this alone may not be enough as the population grows. Innovative new initiatives such as modular housing programmes can dramatically reduce the time it takes to construct a home, providing another important way of working towards this goal.
“Other measures, such as a relief in Stamp Duty for downsizers, should also be considered, as this will help to free up a vast amount of existing housing stock for those moving up the property ladder.”