House sales in London increased by by 22% in August but remained virtually static in all other regions in England & Wales, according to the latest house price index from LSL / Acadametrics.

Average house prices registered a 0.2% increase in August but, over the last five months, have remained largely static.

Year on year house price growth slowed to 7.7%, and is expected to slow further as 2010 increases fail to match those of a year ago.

David Brown, commercial director of LSL Property Services, said: “The pickup in house sales since the start of the year dropped off in August. The exception is London where high demand for prized property from cash-rich buyers has seen housing market activity increase. Some buyers will be wary of imminent public sector cuts and the knock-on consequences for the economy.