House prices across the UK were 12.1 per cent higher in June in comparison to the previous year, according to the latest figures from the Department of Communities and Local Government (DCLG).

The cost of an average property rose to £214,222 in June from £210,793 in May, representing the highest rate of growth since March 2005.

In addition, the DCLG's report revealed that house prices in London remain buoyant, with the rate of annual growth reaching 17.5 per cent in June, up from 14.3 per cent in May.

Commenting on the official figures, Howard Archer from the analyst firm Global Insight said: "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."

The delayed findings is due to the fact that the DCLG's figures are based on the completion of home sales in the UK, with many market observers feeling that this makes them among the most accurate representations of property figures.