North West has lowest growth in house prices

The Office for National Statistics (ONS) said across the UK, house prices increased by 0.6 per cent month on month in February.

But the annual pace of growth in property values is showing signs of slowing across the majority of the UK.

Across England, prices have increased by 7.4 per cent over the last year, to reach £280,000 on average.

House prices in England are below the levels seen last August but are still 12.7 per cent higher than their 2008 peak levels. Annual price growth in England has been driven by the east and London, the ONS said.

Unlike any other English region, house prices in the east of England lifted to record levels in February after recording year-on-year growth of 10.7 per cent.

This is faster than the rate of house price growth seen in London, which saw a 9.4 per cent annual increase in February.

The average property value in the east of England is now £288,000. The typical London house price is £490,000.

London house prices are now 2.4 per cent below an all-time high seen last August, but they are still more than one third (36 per cent) higher than average values there in 2008, just before the effects of the economic downturn were felt.

Every region of the UK has seen house prices lift over the last year. Across the UK, first time buyers faced paying 7.4 per cent more for a property in February than if they had bought a year earlier.

The ONS said the average price paid for a starter home in February was £205,000.

House prices in Northern Ireland surged by 14.2 per cent in February, marking the strongest annual rate of growth seen there since November 2007.

Property values in Wales increased by 1.1 per cent year on year to reach £170,000 on average. House prices in Scotland have also edged back to below their 2008 pre-downturn peak. Average values there increased by 6.4 per cent in the year to February and now stand at £194,000.