UK house prices surged to a new record high of £274,000 in August after increasing by 11.7 per cent over the previous 12 months, the Office for National Statistics (ONS) has reported.

Growth in property values in London continued to outstrip the rest of the UK, with prices in the capital leaping by 19.6% year-on-year to stand at £514,000 typically in August, the Office for National Statistics (ONS) data showed.
Average house prices in London pushed over the half a million pound mark for the first time in July.
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Prices across the country jumped by 0.6 per cent month on month in August, which was a weaker increase than a 1.6 per cent monthly uplift recorded in July.

Many other reports covering developments in the housing market in recent weeks have pointed to the pace of house price growth softening, particularly in London following the capital's strong run of increases.

These reports have suggested that speculation over interest rate rises, tougher mortgage lending conditions and potential buyers baulking at some of the prices being demanded by sellers are prompting the start of a calmer phase for the housing market in the coming months.

A first-time buyer typically faces paying 12.9% more for a home than they did a year ago, with the price of a starter home now standing at around £210,000, the ONS figures showed.

Property values across England and Scotland are continuing to hit record highs, while those in Wales and Northern Ireland have still to catch up with the levels seen before the financial crisis struck.

Average house prices in England have increased by 12.2% year on year in England to reach £285,000, by 4.7% year,on,year in Wales to reach £172,000, by 6.7% in Scotland to reach £200,000 and by 9.6% in Northern Ireland to reach £143,000, according to the ONS data.