The average price of a residential property in England and Wales rose slightly last month despite a month-on-month decline recorded in London.

Your Move and Reeds Rains’ monthly house price index found that the average house price in England and Wales last month hit £292,763, marginally up from £292,644 in August, and up 3.5% on September 2015.

Prices for the East of England led the charge again, up 7.5% for the year, ahead of the South East, up 7.2%, and the South West, up 4.2%.

In contrast, high priced prime London property continued to see the biggest slowdown in price inflation, while annual price increases in greater London fell from 4.7% to 2.5% in September, with average prices falling marginally month-on-month by 0.6% to £580,930.

Adrian Gill, director of Your Move and Reeds Rains estate agents, commented: “We’re seeing a two speed market become firmly established as cheaper parts of the capital and the regions record big price increases driven by demand for affordable homes, while prime London property stalls.

“At the same time transaction levels are showing how much the market has changed, with the number of properties now held by private landlords changing market dynamics.

“This all creates big challenges for government housing policies, which are going to have to be flexible enough to allow regions to make use of the solutions that work best for their different needs.”