Land Registry figures show price growth in London at 8.3% year-on-year, although growth in the East outstrips the capital at 8.9% after a massive 2.8% spike in July.
The North East saw the lowest growth at 0.4% and Wales reports the only July price fall of 0.3%.
Commuter hotspot Reading experienced the greatest annual house price rise to July of 13.6%, where in contrast, Blenau in Gwent, Wales fell -5.5%.
The July monthly data shows an annual price increase of 4.6%, which takes the average property value in England and Wales to £183,861. Monthly house prices across the country have risen an average of 1.7% since June 2015.
However, due to higher Stamp Duty on high-end properties, the number of sales for over £1m fell by 21% to 878 from 1,113 a year earlier.
Low inflation, rising wages and the strengthening economy should help to drive demand in future months, said Stephen Smith, director, Legal & General mortgage club and housing.
He added: “It’s encouraging to see that there’s been a 14% increase in housebuilding on last year, according to this week’s figures from the National Housebuilding Council. This is a move in the right direction, but construction is still well below where it needs to be. In order to bring balance to the housing market, around 250,000 new homes need to be built each year to reduce competition and ensure that there are enough properties available for people to buy.”
Adrian Gill, director of Your Move and Reeds Rains estate agents, said: “More recently in July, we saw monthly first-time buyer sales hit a post-recession record.”
He continued: “While an interest rate rise has been relegated into next year by the Chinese stock market crash, play won’t stop for those looking to buy a home before borrowing inevitably becomes more expensive.”
