UK house price growth slows, ONS says

Official government data showed UK house price growth slowing slightly, with a 5.2% increase in the year to July 2015, down from 5.7% the month before.

The Office for National Statistics said this was the lowest rate of change since September 2013 but stressed that the pace of house price growth remains strong by historical standards.

On a seasonally adjusted basis, the ONS house price index showed 0.8% month-on-month growth, up from 0.6% the month before.

An average UK house price in July 2015 cost £282,000, with the average London home now valued at £525,000.

House price annual inflation was 5.6% in England, with Northern Ireland showing the strongest growth of 7.4%, Scotland showing a decline of 1.3% and Wales up 0.3%.

Price increases in England were led by continued strong growth from the East, where prices were up 8.3%, and the South East, where home values climbed 6.7%.

"The softening in the annual pace of house price growth continues a trend that has been in evidence since mid-2014," the ONS noted, with the annual rate of house price growth having reached 11.5% twelve months ago, more than double the headline rate this month.

"Although weaker, the pace of house price growth remains strong by historical standards. With improving economic conditions sustaining a recovery in housing demand while supply remains tight, the mismatch between demand and supply continues to support house price growth."