The average price of a home in London rose to £499,997 in September, according to the latest figures from the Land Registry.
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Property values across England and Wales rose by 5.3% in the year to the end of September, the data reveals.
“We expect house prices to rise by around 6% in 2016 after a likely similar increase in 2015”, said Howard Archer, chief United Kingdom and European economist at IHS Global Insight.
Meanwhile, house prices in the North East declined 0.3% year-on-year, bringing the average price down to £99,559.
The number of properties sold in England and Wales for more than £1 million dropped by 9% to 1,413 from 1,555 in the year from July 2014.
Kensington and Chelsea remains the most expensive London borough in which to buy a home, with an average property costing over £1.3 million.
On a monthly basis, prices were up 1 per cent. However, the number of property transactions decreased, suggesting that the market is perhaps not as healthy and functioning as well as it could be.
ReutersLondoners pose while visiting the Dalston House art installation by Leonardo ElrichThe very top of Britain’s property market is slowing down and it’s a sure sign that a few of the wealthiest middle-class are struggling with rising prices. Properties worth over £2m also fell by the same amount to 288 from 370 previous year.
High-end homes worth between £1.5m and £2m were the hardest hit, with completed sales down by 22 per cent to 285 in July compared with 364 the same month previous year, following the introduction of tougher stamp duty rules.
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“Buyers are being more cautious: properties that are nicely finished and realistically priced are being snapped up, even under sealed bids, while those that are overpriced and not that special are lingering”.
