Transactions were up by 4% in the third quarter of this year compared with the same period a year ago.

The biggest rally was in prime central London where sales volumes were up by 25%.

This morning’s house price index by LSL and Acadata said the pace of annual house price inflation continues to slow, despite a 0.3% monthly rise in November. Annual inflation is now at 0.9%.

The index puts the average house price at £300,859, above the £300,000 mark which it crossed last December.

Prices across Greater London were down 0.6% on a monthly basis and 3% annually to £586,987, while in the south-east house prices tiptoed down 0.1% on a monthly basis to £371,182. However, annual growth in the region is 1.8%.

On a monthly basis, prices rose in all other regions, with the strongest monthly price rises in Wales at 1.2%, the west midlands at 0.5% and the east midlands at 4%.

However, in regional commentary, the index said that the slowdown which began in London and has spread to the south east, may now also be affecting the east of England.

The region, which as recently as August led house price growth in England and Wales, is now in sixth place, with annual growth of 2.8% and monthly growth of just 0.2%.