The rate of property inflation continues to rise – in London.  During the past twelve months the capital city has experienced a slightly less than 7% increase in property prices according to the most recent figures.  In contrast, the annual price growth across the rest of the UK has only been 2.3%.  The average has grown over the past month overall to 231,000 pounds.

The rest of the UK has seen a completely opposite side of the coin however, as England showed growth and Scotland and Wales both saw declines.  Decreases of 1% in Scotland and almost 12% in Northern Ireland both voided the 2.8% growth seen in England.

London towers above all other regions with an average property price of 392,000, but this high price seems to have little effect on other parts of the country.

According to the property website Zoopla, almost 40% of the homes on the market have been reduced at least once.  That discount has averaged around 20,000 pounds.

Spokesperson for the website, Nigel Lewis, commented on the amount of distractions Brits have dealt with over the past months while possible trying to move home at the same time.  He said: "Once the distractions of summer holidays and the Olympics are gone, buyers will once again be able to focus attention on their property search and this should bolster confidence among sellers.”

Howard Archer of IHS Global Insight believes prices still have room to move south.  He commented on the market, saying: "Housing market activity is persistently low compared with long-term norms, and while it may eventually be lifted by more mortgages being granted at decent interest rates under the Funding for Lending scheme launched by the Bank of England, this is unlikely to be a major factor in the near term at least.”