London has marked the lowest annual house prices growth across the UK while UK average prices returned to levels seen earlier this year.
Figures from the Office for National Statistics show that average prices in the capital increased by 2.2 per cent over the year to July 2021, down from 5.1 per cent in June.
The city’s average house prices remained the most expensive out of UK regions, at an average of £495,000, according to the Land Registry’s House Price Index.
Average prices for July returned to similar levels seen earlier in the year after prices were previously inflated as buyers rushed to ensure purchases would complete ahead of tax break deadlines.
UK average house prices increased by eight percent over the year to July 2021, down from 13.1 per cent, as buyers searched for their dream property in the wake of lockdowns.
The average UK house price was £256,000 in July, down from the record level of £265,000 in June. The average was up £19,000 on this time last year.
Average house prices increased seven per cent over the year in England to £271,000.
It comes as the property market is facing huge shortages of available properties as eager first time buyers and investors have absorbed stock but not replenished it.
“Activity levels in July didn’t drop as much as originally expected with the number of newly agreed sales being very close to May and June figures,” Guy Gittins, CEO of estate agent Chestertons said.
“Since the easing of lockdown restrictions, buyers have been eager to take control of their lives again and a big part of this is to find a property and location to call home.”
The estate agent said buyers were particularly keen for larger properties with gardens in the wake of Covid lockdowns.