Prices cool for summer as north-south divide re-emerges

• Average house prices continue downwards trend, now £2,358 lower than March peak
• Annual prices grow 3.8% as the East of England reclaims top spot
• City of Westminster sees 19.7% increase as prime property leads London
• City of Peterborough has highest increase in transactions, up 31% on 2015 levels

Prices fell in June, continuing to slide for the third month in a row with average values now down £2,358 in the last quarter. More than half the unitary authority areas in England in Wales – 60 out of 108 – reported prices falling over the month. The average price in June was £301,114, down 0.2% on May.

Despite this, the broad trend over the last year remains a modest rise, and prices are still 3.8% or £11,037 up on this time last year. The East of England, particularly, continues to show strong annual growth, regaining its top spot among the regions. In London, Westminster sets a new peak price, up 19.7% annually to reach £1,865,843.

Oliver Blake, Managing Director of Your Move and Reeds Rains estate agents, said: “Don’t write the market off just yet. We’ve seen three months of falls, but it’s far too early to panic. Mortgage rates are still affordable and the slow down we have seen will already have helped some buyers struggling with affordability.

“We’re still seeing strong growth in the East and in prime London. We’re also seeing a return to the North-South divide in terms of price growth. In many ways, it feels like we’ve been here before.”

Click here to read the House Price Index – June 2017 (England and Wales)

Data source: LSL Property Services