The South West of England has just become only the fourth region where prices now exceed their pre-recession peak, according to LSL Property Services. The firm adds that house prices have been climbing by the equivalent of just 2% annually since the peak 2007/08, with September seeing the smallest monthly increase in prices this year.

David Newnes, director of Reeds Rains and Your Move estate agents, comments: “For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score – and a North/South divide in the field remains evident in the race back from the debris of the financial crash. The North has the furthest ground to travel, with average prices still 8.3% (or £13,400) below their housing boom high in March 2008.

“Average house prices on sales completion in the South West set a new record in August, surpassing their October 2007 peak for the first time. This makes it the fourth region after London, the South East and East Anglia to scramble out from under the shadow of the financial crisis.”