The latest LSL house price index showed that house prices in England and Wales rose 2.5% in the last year to hit £232,801 in June.

This rise continued to be driven by the London market, where prices moved up 7.9% to reach an average of £452,344. Kensington and Chelsea remained the most expensive borough in the capital with an average house price of almost £1.5m.

Sexton said that house prices were now reaching record levels thanks to increased availability in the mortgage market.

“It’s taken almost five years, but the housing market finally looks set on the road to recovery from the 2008 downturn,” he said.

“The catalyst has been a significant improvement in mortgage availability which is thawing the frozen first-time buyer market. Lenders are more willing to lend to high LTV borrowers, and this spate of activity at the bottom end of the market is reverberating all the way up the housing chain.

“The plethora of attractive mortgage deals on offer is working wonders and wider pools of buyers are flocking to the market.”

Outside of London, the Isle of Anglesey saw the greatest house price increase with property values up 8% on the same period last year. Prices in Brighton & Hove, Hertfordshire and Slough also hit record highs during the same period.

Sexton added that while prices were rising, the situation remained difficult in most areas outside the South East of England.