London property prices fell by 1% in a month

Cash sales account for 30-40% of UK property transactions, says the ONS

Cash deals account for between 30% and 40% of all residential property transactions in Britain, according to the latest UK House Price Index from the ONS and Land Registry.

London has the lowest proportion of cash sales (around 25%), while the South West has the highest (around 40%).

UK HPI, August 2017

£484,362

The average price of a property in London (August 2017)

The average UK property value increased by 0.5% in August, taking the annual rate of house price inflation to +5%, and the average price to £225,956.

Values in London, however, fell by a full 1% in August, to leave the annual change at just +2.6%. That’s the biggest monthly drop of any region in the country, the slowest rate of annual growth, and the ninth consecutive month where the growth in London house prices has remained below the UK average.

Annual house price rates of change, UK all dwellings from January 2006 to August 2017
Average UK house price, January 2005 to August 2017
Average house price, by English region, January 2004 to August 2017

6.6% more transactions were done across the UK this August compared to August 2016 – but the seasonally adjusted number of deals decreased by 0.5% between July 2017 and August 2017.

London is seriously under-performing the wider national market in transaction numbers as well. The most recent data, released today, indicates that the number of completed house sales in London fell by 20% to 6,768 this June, compared with 8,464, in June 2016.

Sales volumes for 2013 to 2017 by country: June 2017

Price change by region for England

Region Monthly change % since July 2017 Annual change % since August 2016 Average price August 2017
East Midlands 0.3 6.4 £183,762
East of England 0.0 6.4 £288,440
London -1.0 2.6 £484,362
North East 1.4 3.7 £130,731
North West 2.3 6.5 £159,865
South East 1.1 4.8 £324,983
South West 0.6 6.4 £251,984
West Midlands 0.6 5.3 £188,447
Yorkshire and the Humber 1.4 4.8 £158,689

Sales volumes for England

Month Sales 2017 England Sales 2016 England Difference %
May 60,454 60,179 0.5
June 66,082 74,259 -11.0

Sales volumes for London

Month Sales 2017 London Sales 2016 London Difference %
May 6,551 6,617 -1.0
June 6,768 8,464 -20.0

Average price by property type in England

Property type August 2017 August 2016 Difference %
Detached £369,588 £345,629 6.9
Semi-detached £224,894 £213,578 5.3
Terraced £197,746 £187,756 5.3
Flat/maisonette £225,943 £218,078 3.6
All £243,520 £231,173 5.3

Average price by property type in London

Property type August 2017 August 2016 Difference %
Detached £921,881 £889,102 3.7
Semi-detached £582,853 £568,554 2.5
Terraced £505,964 £488,417 3.6
Flat/maisonette £424,385 £415,598 2.1
All £484,362 £471,946 2.6

Funding, buyer and building status for England

Transaction type Monthly price change % since July 2017 Annual price change % since August 2016 Average price August 2017
Cash 0.6 5.2 £228,695
Mortgage 0.8 5.4 £250,987
First-time buyer 0.5 4.8 £204,163
Former owner occupier 0.9 5.8 £276,546
New build 0.7 11.3 £307,725
Existing resold property 0.7 4.9 £239,321

Funding, buyer and building status for London

Transaction type Monthly price change % since July 2017 Annual price change % since August 2016 Average price August 2017
Cash -1.9 2.2 £504,874
Mortgage -0.7 2.7 £477,807
First-time buyer -1.1 2.2 £423,224
Former owner occupier -0.8 3.0 £547,133
New build 0.0 8.9 £513,785
Existing resold property -1.1 2.1 £482,012