Average house prices across England and Wales jumped £1,900 in August – the fastest rise seen for past 12 months according to LSL Property Services.
This takes the average property price to £282,816 after a 4.1 per cent increase over the past 12 months. All 10 regions of England and Wales are showing annual increases in house prices.
However, there is bad news too - transactions have fallen behind 2013 levels for the first time this year following a 14 per cent drop in August alone.
In the three months to July 2015, property sales have dropped three per cent year-on-year. Across all of England and Wales, the North is the only region where activity has increased over the period, with home sales up three per cent during the period May to July 2015 compared to the same three months in 2014.
The largest fall in activity has been in East Anglia, with total property sales down 9.0 per cent and sales of flats 15 per cent lower year-on-year from May to July.
At the same time, this region has experienced the highest house price growth of any region, at 5.9 per cent in July this year.
A LSL spokesman says this dichotomy suggests it’s not demand that is the problem, but supply.