Property prices rise again, with London average reaching £500,000

House moneyProperty prices in England and Wales increased by 1% in September, taking the average house price to £186,553, according to the latest Land Registry data.

Year on year prices have increased by 5.3% but in London it is much higher at 9.6% year on year and 1.8% month on month and the average price in the capital city is now a record £499,997.

The North East saw the only annual price decrease of 0.3% and also saw the only monthly price decrease with a fall of 0.3% as well.

But sales are down. From April 2014 to July 2014 there was an average of 78,330 sales per month but in the same months a year later, the figure was 71,766.

The data also shows that the number of properties sold in England and Wales for over £1 million in July 2015 was down 9% year on year and in London it was down 16%.

More than 93,000 residential property sales were lodged for registration in September.

The most expensive sale recorded last month was in Knightsbridge, London, where a flat at One Hyde Park sold for £17.5m.

The cheapest sale was in Pendle, Lancashire, at £12,000.

Analysts at Capital Economics questioned whether London would maintain such strong growth rates, as buyers are priced out and stamp duty changes take their toll. Under new stamp duty legislation, homes costing between £925,001 and £1.5m are subject to an additional 10pc bill, and properties above £1.5m have been hit with an extra 12pc charge.

“The breakdown of transactions by price range is revealing, highlighting a fragmented market in London with higher value properties struggling to sell. There were 288 £2m-plus purchases in July 2015, compared with 370 in the same month last year,” said Jonathan Adams, director of central London estate agency Napier Watt.

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