- Affordable property drives growth
- Cheaper London boroughs continue to surge
- Transaction levels in August up 2.6% on July
Both price and transactions are recovering from a slump following the spike ahead of the 3% stamp duty surcharge introduced on second homes and buy-to-let properties in April 2016. Following a big increase in March as people rushed to beat the rise and a sharp crash in April, prices have settled. They continue to grow slowly, just slightly below the trend before the change. Transactions, too, have followed a similar pattern.
Transaction levels in August were up 2.6% on July with an estimated 78,000 housing transactions during August, with levels now closely tracking those of 2013 for the past three months.
Although at a slower rate than in previous months, house prices have continued to grow in August, with the average house price in England & Wales standing at £292,921.
Adrian Gill, director of Reeds Rains estate agents, says: “The new market data shows us once again that there is no single housing market but the sentiment, we believe, remains singularly positive – there is demand for affordable property and there are people who, bearing in mind the transaction volumes recorded, have the appetite to make a move."
Source: LSL Property Services/ Acadata England & Wales House Price Index, August 2016