House prices grow at slower pace in August

Billy Bambrough
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Average UK house prices have topped £292,900 with owners sitting on more equity (Source: Getty)

Talk of a house price bubble bursting came to naught in August as house prices continued to grow – although the rate slowed.

Average house prices now stand at £292,921 meaning the average homeowner is sitting on £12,101 more equity than this time last year according to Your Move and Reeds Rains’ monthly house price index.

Both price and transactions are recovering from a slump following the spike ahead of the three per cent stamp duty surcharge introduced on second homes and buy to let properties in April.

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In London, although transactions and price growth have slowed in the most expensive boroughs, more affordable areas have outperformed.

Lewisham prices added 18.7 per cent, while average annual increases in London over the previous three months were 4.6 per cent.

“The new market data shows us once again that there is no single housing market but the sentiment, we believe, remains singularly positive,” said Adrian Gill, director of Your Move and Reeds Rains.

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Meanwhile, separate figures have suggested the average UK one-bed flat now costs tenants more than £1,000 a month. The figures, by Landbay, showed the average UK one-bed hit £1,010 a month in August, 67 per cent of the average disposable income of £1,467.