Average property prices across the UK have risen by five per cent in the last 12 months, with the average value now sitting at around £225,956.
However, the latest figures, which come from the Office for National Statistics (ONS) and the Land Registry, suggest that while house price growth remains robust across most of the UK, values in London are actually falling.
In August, average UK property prices rose by 0.5 per cent month-on-month. Areas such as the East of England, the North West and South West all enjoyed significant house price growth, but values in London fell by one per cent for the second consecutive month.
In the City, concerns have been raised that prices are suffering a decline, while elsewhere, critics have voiced fears that ever-rising property values are pushing homes further out of the reach of Britain’s first-time buyers.
Jeremy Duncombe, of Legal & General Mortgage Club, said: “Annual prices are consistently rising as more buyers chase fewer properties.
“Escalated by a critical lack of housing stock, this trend is only set to continue if more affordable housing is not built.
“As speculation around the Autumn Budget begins to build up, we hope there will be a genuine answer to boost supply that gives everyone a realistic chance to own a home.”