Rate of British house-price increase slows

Government figures show the rate at which house prices in Britain are increasing continued to slow during August.

Government figures show the rate at which house prices in Britain are increasing continued to slow during August.

An government index says the cost of property increased by 14 per cent during the year to the end of August, down from 14.6 per cent for the 12 months to the end of July.

At the same time, the average price of a property rose slightly month-on-month to £159,010 sterling in August from £156,273 in July on a non-seasonally adjusted basis - a 1,8 per cent rise.

The new index readings, which are based on around a quarter of all properties bought with a mortgage each month, was begun in September. It followed calls from the Bank of England and the Treasury for an official monthly house price index.

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London remains the most expensive place to buy a home, with property costing an average of £245,378 Scotland is the cheapest at £96,413, followed by the North East at £100,891.

Scotland, Wales and Northern Ireland all reported an increase in annual house price inflation, with Northern Ireland showing the biggest rise from 4.6 per cent in July to 8.5 per cent in August.

First-time buyers paid an average of £123,469 for a property during August, while former owner-occupiers paid around £182,907.

PA