House prices rose by 1.6 per cent between July and August this year, official government figures released today show.

According to the Department for Communities and Local Government, the average house in the UK now costs £197,631, with the annual rate of house price inflation now standing at 7.7 per cent, although for longer the rate was higher, at 7.9 per cent.

"With the economy growing firmly and households viewing their finances as strong, the housing market will remain robust in the coming months," said Milan Khatri, chief economist at the Royal Institute of Chartered Surveyors, reacting to the findings.

A government spokesperson for the government said that the increasing value of bungalows and detached houses appeared to be the reason for the general increase in prices.

House prices in England remain significantly higher than those in Wales, Scotland or Northern Ireland, with the average English house now costing in excess of £205,000.

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