Property market enjoys “strong” August

House prices in the UK increased in August, bringing the average price of a home to £197,631, up from £194,454 in July, official government figures show.

The overall level of annual house price inflation in the UK was 7.7 per cent, compared to six per cent in July.

London experienced a higher level of price growth in August at 7.9 per cent, although the increase from 7.1 per cent in July was less pronounced than on a national level.

For the three months up to August, the annual rate of house price inflation was 6.3 per cent in the UK and 6.8 per cent in the capital.

According to the government, there was a 5.1 per cent rise in the price of bungalows between July and August, a 3.2 per cent increase in the price of detached houses, flats experienced 1.6 per cent growth in prices and semi-detached houses saw a one per cent increase.

Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors, described August as a "strong month for the property market", noting that the inflation rate was the strongest since March 2005.

"First-time buyer house prices rose at a slightly slower pace of 6.9 per cent but are well ahead of average earnings which will stretch affordability for buyers. However, with the economy growing firmly and households viewing their finances as strong, the housing market will remain robust in the coming months," Mr Khatri added.