House prices across England and Wales have grown by 0.5 percent in the month of August, and 4.2 percent year-on-year, which is the slowest pace of growth since November 2013, a report from the Land Registry revealed today.
The average UK house cost £184,682, with London properties at £493,026 and the average home in the North East of England costing £100,943.
Notably, prices in the North East of England, the North West, and Wales saw home values rise by less than one percent in the year through August, while the East and South East saw prices climb 8.4 percent and 7.6 percent, respectively. London saw a 1.7 percent increase in August alone.
"England's property market is returning to type. Prices in London and the South East continue to march relentlessly upward, while in the North West the dramatic month-on-month fall has all but eradicated the gains made over the past year,” Jonathan Hopper, managing director of the buying agents Garrington Property Finders, said as quoted by the BBC.
"Even as the number of transactions continues to fall, the north-south divide is reasserting itself with a vengeance."
The Land Registry’s figures also revealed that the average number of monthly homes transactions was 65,550, as compared with 73,985 during the same period last year.
Although price growth slowed, the chronic shortage of housing in the UK is still in command of the market, analysts argued, and values are unlikely to halt their advance.
“This month’s figures might show that price growth has slowed, but the fundamentals are such that growth is inevitable over the long-term,” said John Eastgate, sales and marketing director of OneSavings Bank.
“Ultimately, the supply and demand imbalance will sustain property values. The UK is still desperately short of new housing, yet a combination of historically low mortgage rates and improving access to mortgage finance is sustaining demand.”