Mind the gap: London and South East skew average price by record £89,000

The average house price for England and Wales is now £274,302 – but it’s just £185,496 when London and the South East are omitted, LSL says.

The property services provider’s figures also show a slowdown outside of London and the South East as the annual average house price growth drops to 4.3 per cent.

That contrasts with a 10.7 per cent rise in the past year across all of England & Wales.

David Newnes, director of Reeds Rains and Your Move estate agents, calls the UK property market “a game of two halves”, with high prices in London and the South East obscuring lower prices in the rest of the country.

He says it’s crucial to look beyond the London headlines.

“The annual rate of growth in London house prices is the fastest witnessed since 2000.  Most recently we’re seeing asking prices in the capital start to be reined in, which will apply the brakes on annual house price inflation as the market steadies.He 

“What’s happening in London may be eye-catching, but it is akin to looking through a kaleidoscope – and skews any view of the current total housing landscape.

“Peeling back the regional layers gives a much more informed view of the core reality of the current housing market.

“With evidence of London starting to cool off after strong growth earlier in the year, it is critical that the underlying momentum that has stimulated much needed increased volume in the rest of the market is allowed freedom to keep moving, whilst any price rises are kept steady and under control.”