Business

House price inflation easing off, Land Registry shows

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Image caption All surveys suggest that price rises are running out of steam

House price inflation in England and Wales is running out of steam, according to the latest figures from the Land Registry.

Although prices rose by 0.4% in July, the annual rate of increase fell back from 8.5% to 6.7%.

The figures chime with those of other surveys which have also suggested that prices have reached a plateau.

The average house price in England and Wales went up to £166,798, just £1,864 higher than in January.

The annual rate of house price inflation has now fallen for two months in a row, after picking up for the previous 15 months.

Highest and lowest

In the past year, house prices have grown most vigorously in London, where they rose by 1.6% in July alone, taking the annual increase in the capital to 12.1%.

That pushed the price of the average London home to up to £343,730.

Prices also rose in the past 12 months in most other parts of England and Wales, though not as strongly,

But they fell in the North East of England by 1.4%, and in the North West rose by just 0.3%.

Looking at counties and unitary authorities, Brighton and Hove saw the biggest price increases at 17% during the past year.

The number of homes sold in England and Wales averaged 48,219 in the four months from February to May this year.

That was higher than the same period last year, when the monthly average was 36,947 during the nadir of market activity.

Sales have picked up since then, alongside prices.

However, "transaction volumes, while not at 2006 levels, are increasing slowly," the Land Registry said.

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