House prices up 4.6% last month: Land Registry

Monthly house prices were up 1.7 per cent since June, according to Land Registry data.

The Land Registry reported the regional breakdown indicates that the east of England saw the most significant annual price rise, with a movement of 2.8 per cent over the month.

In contrast, the north east saw the lowest annual price increase of 0.4 per cent, while Wales was witness to the only monthly price decrease, with a fall of 0.3 per cent.

Elsewhere, the most up to date figures for sales and repossessions were during May, which showed that the number of completed house sales in England and Wales decreased by 15 per cent to 56,619 - compared with 77,488 in May 2014.

Additionally, the number of properties sold in England and Wales for more than £1m decreased by 21 per cent to 878, from 1,113 a year earlier.

Jonathan Hopper, managing director of buying agents Garrington Property Finders, said that for those who view the squeeze on housing supply as a problem for the future, this dramatic jump in month-on-month price inflation will be a wake-up call.

He pointed out that with the data showing transactions continue to fall, while surveyors are reporting the lowest ever number of properties on their books in July, buyers now far outnumber sellers.

Mr Hopper said: “The result of this tension is a rise in prices almost across the board; though the notable exception is the prime property market, which is still reeling from the rise in the top rate of stamp duty.”

Jonathan Samuels, chief executive officer of Dragonfly Property Finance, added: “The very top end of the market has cooled down significantly, with the number of £2m plus properties selling down by 36 per cent.

“The rules of the game have changed quite substantially for super prime buyers. The east and south east have put in the best performances since London began to cool off. But even when the capital is in relative cool-down mode, it’s still able to generate a respectable annual return.”

ruth.gillbe@ft.com