London is the only region in England where house prices fell in August

 
Emma Haslett
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House price growth in the UK edged up (Source: Getty)

UK house prices edged up five per cent in August, according to official figures, although the capital was the only English region where month-on-month house prices fell.

The Land Registry's house price index showed prices climbed to £225,956 in August, up 0.5 per cent on the month before.

The North West was the strongest performing region, with prices rising 6.5 per cent year-on-year. Meanwhile, London was the worst performing region, with prices rising just 2.6 per cent on the year - and falling one per cent between July and August.

The only other regions to show falls were Scotland, where prices dropped 0.7 per cent month on month, and Wales, where prices dropped 0.1 per cent.

London prices falter

The figures were another sign house price growth in the capital is beginning to falter, after changes to stamp duty and political uncertainty combined with a squeeze on consumers' wallets, which means homes may be hitting a so-called affordability ceiling.

“The uncertainty over Brexit may be felt more keenly in London than other areas due to the importance of international businesses," said Richard Snook, senior economist at PwC.

"Figures from the City of London borough bear this out where prices are down 18.4 per cent compared to a year ago."

Yesterday Rightmove's house price index, which measures the prices of homes put on the market, suggested the average UK property price has risen 1.1 per cent in October, but added that the number of sales agreed has fallen 5.9 per cent in a year.

Read more: What will an interest rate hike mean for house prices?

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