HOUSE prices in England and Wales are at an all-time high but sales have slumped by 15 per cent, figures revealed today.
The average house now costs #183,861 - up from #175,697 at the same time last year.
But while house prices on the whole are up 4.6 per cent over the last 12 months - but up by 1.7 per cent since June - the number of deals going through has plummeted.
In May 2015 there were 65,619 completed house sales in England and Wales, according to the Land Registry.
This is 15 per cent lower than the 77,488 deals completed the year before.
The drop coincides with the General Election, a lack of supply and heavy taxes imposed on expensive homes.
Henry Pryor, property analyst and buying agent, said: "As predicted, sales slowed over the General Election as people sat on their hands waiting for the anticipated fall-out.
"An outright Conservative victory was not predicted by many so when it came buyers and sellers were unsure exactly what it would mean.
"Some clumsy estate agents claimed a sales splurge in the days following the Tory victory but the headlines that accompanied them have been exposed by this latest report.
"Whilst London was still bubbling and the East of England recorded annual rises of 8.9 per cent - prices and transaction volumes remain under pressure for many."
London remains by far and away the most expensive place to live, with houses up 8.3 per cent year-on-year to #488,782.
The cheapest place to buy is the North-East, where the average home costs #100,670.
Across England and Wales, the average annual house price increase for the year is 4.6 per cent, with prices up 1.7 per cent for the month.
The increase has been attributed to the lack of supply along with the Government's Help to Buy scheme.
Mr Pryor said: "First time buyers remain squeezed and those renting instead are seeing their monthly rent bill rising too.
"If you are already half way up the housing ladder then you're probably alright. If you aren't yet on it then the first rung is still out of reach for most."
The top end of the market has been hammered the hardest.
There were 186 deals struck between #1.5 and #2 million, down 31 per cent on the same time last year. The #2 million-plus market has slumped 36 per cent from 256 to 164.
This coincides with the Stamp Duty changes which sees buyers of homes costing more than #1 million paying around 10 per cent in tax.
The change in stamp duty was introduced to fend of Labour's feared Mansion Tax, but it has had a more dramatic effect, Mr Pryor added.
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