The price of an average home rose to record levels in July, however the rate at which they are increasing is continuing to slow, according to government figures.

Data from the Office for National Statistics (ONS) has revealed the cost of a UK home increased by £5,000 (0.8%) to £282,000 in July.

However, the pace at which values are increasing slowed to 5.2%, down from 5.7% in June.

-- Advertisement --

The ONS said although the rate of price rises had weakened, it remained strong according to past standards.

Elsewhere, the cost of a home in Northern Ireland rose by 7.4%, while in Wales it increased 0.3%.

However, house values in Scotland fell by 1.3%.

Paul Smee, director general of the CML, said: "The market has shown steady growth in house purchase and buy-to-let over the past few months with general improvements in economic factors across the UK allowing for more people to enter the property market.

"This positive direction of travel going into the autumn months reinforces our recent revised forecasts that lending levels should continue to grow gradually over the rest of the year after a subdued beginning of the year."

(LM/CD)