The England and Wales house price index by property firm LSL showed that annual property growth in the year to June was 4.1%. This is the lowest yearly increase since August 2013, the firm said.

Despite this, the average house price now stands at £278,849, the highest figure ever recorded by this survey.

Prices outside of London and surrounding counties grew faster than the capital city. Growth in England and Wales, excluding London and the South East, was measured at 4.4%.

London ranked seventh in regional growth tally, with annual price rises of 1.8% in the year to June.

Adrian Gill, director of Reeds Rains and Your Move estate agents, said the market was starting to rebalance away from London.

“It is the pricier south of the country which has seen the most significant slowdown in sales – with the volume of properties sold in London and the South East 15% lower than 2014 levels,” he said.

“But healthier activity levels in the North, Yorkshire and Wales should help to balance out some remaining regional disparities in price growth.  It’s encouraging that we’re seeing livelier activity where prices need to get back onto their feet – as there are still some pockets of Wales, the North and Yorkshire where house prices are lower than twelve months ago.

Gill added: “With borrowing cheaper than ever, wages recovering, and government schemes and incentives to lean on, buyers’ purchasing power is stronger than it has been for a long while. As a result of this positivity, higher demand should place some upward pressure on prices in coming months, and keep the momentum of the market moving forward.”