Annual UK house price inflation rose by 6% in the year to July, up from 5.2% in the year to June, according to the Department for Communities and Local Government (DCLG)

Property prices led the way in London, with annual price inflation in the capital rising from 5.8% in June to 7.0% in July. The report reveals that the average property in the UK now costs £194,454.

House price inflation in England rose to 5.5% in July, compared with 4.6% in June. In Scotland, house price inflation rose to 9.3% from 8.9%. While in Northern Ireland and Wales prices fell back slightly between June and July. In Northern Ireland the rate fell from 19.1% to 18.3%, while in Wales the rate fell from 8.5% to 7.4%.

Milan Khatri of the Royal Institution of Chartered Surveyors says: "The acceleration in house price inflation... confirms that the property market enjoyed a firm rebound during the summer months."