HOUSE prices leapt 12.1 per cent in the 12 months to September, marking the fastest annual growth seen since July 2007, official figures have said.

The average house price across the UK stood at £273,000 in September, £1,000 lower than an all-time high recorded in August but still nearly 12 per cent higher than typical values during the previous peak of the market in 2008.

The figures, released by the Office for National Statistics (ONS), said a typical first-time buyer faces having to pay 13.3 per cent more to get on the property ladder than they did a year ago.

It added house prices are continuing to "increase strongly across the UK, with prices in London again showing the highest growth".

On a month-on-month basis, prices across the UK increased by 0.5 per cent between August and September, a smaller uplift than a 0.8 per cent monthly rise recorded in August.

Over the last year, prices have increased by 12.5 per cent in England to reach £285,000, by 5.8 per cent in Wales to reach £172,000, by 7.6 per cent in Scotland to reach £197,000, and by 10.9 per cent in Northern Ireland to reach £143,000.

House prices in England and Scotland remain above their pre-financial crisis peaks of 2008 but have dipped slightly compared with their levels in August.