House prices accelerate in June

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UK house prices were 12.1% higher in June than a year earlier, according to the latest government figures.

The rate of growth was the highest since March 2005, and compares with May's revised figure of 10.8%.

The average UK house price rose from £210,793 in May to £214,222 in June, according to the Department of Communities and Local Government.

Recent surveys from the Halifax and Nationwide have also seen price growth remain strong.

But many expect the pace to slow later in the year as the five interest rate rises of the past year take effect.

Market 'resilient'

The DCLG survey it takes its figures at the point when mortgages are completed while other surveys tend to take their figures from earlier in the process.

It means that the figures are very reliable, because they exclude the possibility of sales falling through, but they tend to lag behind the figures in other reports and will show trends later.

These figures are for June while Nationwide and Halifax have already published their figures for July.

"There is no denying that the DCLG house price data are markedly stronger than expected, and suggest that the housing market is proving resilient to higher interest rates," said Howard Archer from Global Insight.

The DCLG survey also showed that price growth in London remained buoyant, with annual price growth hitting 17.5% in June, up from 14.3% in May.