House prices down 2.2% year-on-year in August, says LSL

House prices increased by 0.3% in August compared to the previous month, but fell by 2.2% year-on-year, according to the latest LSL/Acadametrics House Price Index.

The research also shows that housing transactions increased by 1.5% compared to July.

Richard Sexton, business development director at e.surv, says: “The property market bounced back this summer, with consecutive months of price rises following falls between April and June. Prices in London rose most, thanks to all the cash buyers pushing up demand.

“Transactions also rose 1.5% which completely defies the classic summer slowdown. Transactions usually fall by about 1.5% between July and August.”

He says that mortgage finance is very cheap at the moment and the fact that properties are so reasonably priced is also helping to allay lenders’ fears about borrowers’ ability to repay their loans.

However, Sexton adds that raising a deposit is still a significant hurdle to many prospective first-time buyers.