House prices saw strong growth in July, with the average house rising in value by nearly £3,500, the latest government figures show.

According to the Department for Communities and Local Government, the average house price stood at £194,454 by the end of July, compared with £191,016 a month earlier.

This was equivalent to an annual inflation in house price of six per cent.

London continued to see stronger growth than average, maintaining an annual rate of inflation of 7.1 per cent, with the average house in the capital now costing £285,434.

However, the department's report also warned that fluctuations in the housing market could make month-by-month comparisons misleading.

The growth is believed to have resulted from an unusual level of buyer interest over the summer months, combined with a shortage of properties on the market in certain desirable areas.

The trend was not seen across the country though, with Northern Ireland and Wales both seeing falls in house price inflation – down 0.8 per cent and 1.1 per cent respectively.

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