They found that house prices have remained almost stagnant since March, with the average property prices rising just £20, to £223,971, from the end of April to the end of May.
However, LSL said that, while average house prices have remained effectively stagnant over the past four years, borrowers have not been able to take advantage of improving affordability due to lack of mortgage supply.
In the last year, house prices have risen by an average of £220 a month, but to keep pace with inflation, they would have had to rise by £830 a month.
Acadametrics highlighted that this was fourth month out of the last 12 in which the monthly growth rate has been nil. However, this stability in the overall housing market hides significant regional volatility.
Annual house price growth also reveals the rate of recovery, since the last low of April 2009, is slowing, with growth falling from 9.8% in June 2010 to 1.1% in May 2011. Acadametrics found that the slowing of house price rises is occurring across the country, not just northern regions.
The report showed transactions in 2011 are running below 2010 levels, itself a weak market representing 61% of the long-term average of house sales. Transactions in the four months to the end of May were down 4% to 129,716 compared to the same period of last year.
This trend was reflected across the whole country, except the North, where transactions rose 2% to 6,590. The largest fall was in the South East, down 7%.
David Brown, commercial director of LSL Property Services, said: “Buyers have been unable to make the most of improving affordability because, despite the smaller proportion of salaries property prices currently represent, buyer confidence is low and it’s still far too difficult to get a mortgage.
“Economic uncertainty, fears over jobs, a squeeze on incomes and nervous mortgage lenders are keeping a lid on the housing market. It’s no wonder transaction volumes remain so very low.”
