The Land Registry data shows house prices for homes in east of England up 1.6% with London gains of 9.1% in the last year.
Homes in London were higher by only 0.7% from April to May compared to East and North east England up 1.6%. London and the South East remain the highest gains of 9.1% over a year.
Property values in England & Wales have increased 4.6% over the last year to May averaging £179,696 compared to £180,990 in November 2007.
Homes in London are now valued at £475,961 and the South East average is £246,552 both with the highest gains of 9.1% over a year. This figure is lower compared to prices last month for London where the increase was 10.9% year on year.
The rise in prices makes it harder for first time buyers to secure their first home and home movers to buy larger properties.
London prices almost five times higher
Average prices in London at £475,961 are now almost five times higher than the North east averaging £100,295.
Even so London prices are slowing faster than other parts of the country. This could be due to a decrease in the sale of more expense properties of £1 million or more predominantly located in London.
The Land Registry figures show that the number of properties sold in England & Wales valued at over £1 million have decreased 6% over the year from 893 to 842 in March 2015.
The number of completed sales has also reduced by 12% to 59,311 in March 2015 compared with 67,321 a year ago.
Detached property prices rise faster
The price of detached increased by 5.2% over the year to May 2015 with the average price for England & Wales up from £268,751 to £282,854.
This price rise is an advantage for remortgage buyers as they can release capital by extending their mortgage to improve their home, such as new kitchen, bathroom or extension.
On average the price of flats and maisonettes increased at the slowest rate of 4.0% with average prices rising from £164,630 to £171,269.
Semi-detached properties increased by 4.7% with an average price of £170,280 in March 2015 and terraced properties were up by 4.5% to £129,646.
Higher property values for older homeowners allows the equity release mortgage buyer to access wealth to consolidate debt, for home improvements, holidays or even pay for care at home.
Even though property prices are slowing there has been a significant decrease in repossessions falling 35% from 1,092 in March last year to only 706 today. The East of England has experienced the greatest fall in repossessions.
This could be due to regulations introduced last year requiring lenders to conduct rigorous affordability tests for mortgage applicants.
First time buyers, home movers and switching remortgage buyers must provide information on income and outgoings such as expenditure and child care costs.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to maintain your lifestyle, home improvements, holidays or gift to a family member.
Learn more by using the equity release calculator, mortgage cost calculators, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
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