The average monthly increase in house prices slowed in August as London continued to record the biggest rise.

The national average rise was 0.4% last month, down from 0.6% in July and June. The average house price across the UK is now £167,200, a rise of 3.9% since January.

House prices in London rose 0.9% last month.

But Richard Donnell, director of research at Hometrack, author of the report said: “The sensitivity of the housing market to interest rates means the London-inspired mini-boom of the past eight months is likely to run out of steam over the autumn.”