House price growth in London continues to be the driving force behind the market growth across England and Wales, the latest house price index from the Land Registry has shown.

According to the official statistics, the average house price in the capital rose to £338,950 in June, a 15.8 per cent increase on the previous year and a monthly rise of 1.5 per cent.

However, the report also shows that the rate of growth across the rest of the country continues to lag behind London.

The market in England and Wales in June grew by just 0.4 per cent, in comparison to 0.7 per cent in May, with the cost of the average property now standing at £181,039, equivalent to an annual change of 9.1 per cent.

The figures follow on from those released by the Nationwide, which also showed a slowdown in the market.

"House prices [across the UK] went up only 0.1 per cent in July, the lowest percentage of growth since April 2006," said Fionnuala Earley, chief economist at the Nationwide.

"The underlying growth trend has resumed a downward path," she concluded.