House prices rose by 0.4% in August to reach a record high level of £294,260, said Halifax.

Prices are now up by 11.5% over the last 12 months, which is slightly lower than the 11.8% annual inflation recorded in July.

Wales is still showing the strongest annual growth in the UK, with annual house price inflation of 16.1%, – the highest rate of growth since 2005.

This means average property prices in Wales have risen by £31,246 over the last year, with an average property now costing £224,858.

The South West of England saw prices rise by up 14.5% over the last year, said Halifax, with an average property cost of £313,003.

The rate of annual growth in Northern Ireland eased back further last month to 12.5%, with a typical home now costing £185,505.

A Scottish home now costs an average of £204,362, up 9.4% over the year and another record high for the nation.

The rate of annual house price inflation in London rose again to now stand at 8.8%, its highest level in over six years. With a typical property costing a record £554,718 the capital’s average house price has risen by £44,669 over the last 12 months.

Kim Kinnaird, director of Halifax Mortgages, said: “The typical house price reached another record high in August (£294,260) – as it has done in seven out of the eight months so far this year. However, the annual rate of growth dropped to 11.5%, from 11.8% in July, the lowest level in three months.

“While house prices have so far proved to be resilient in the face of growing economic uncertainty, industry surveys point towards cooling expectations across the majority of UK regions, as buyer demand eases, and other forward-looking indicators also imply a likely slowdown in market activity.

“With house price to income affordability ratios already historically high, a more challenging period for house prices should be expected. However this should be viewed in the context of the exceptional growth witnessed in recent years, with average house prices having increased by more than £30,000 over the last 12 months alone.”

Mark Robinson, managing director of Albion Forest Mortgages, added: “August was busier than ever, with first-time buyers especially active. Even as we enter a very dark winter for the economy, I cannot see house prices falling due to the sheer lack of supply.

“We are, however, far more likely to see a slower rate of house price growth. Though there is slightly less competition than a year ago as some prospective buyers put their plans on hold amid the cost of living crisis, it’s still a sellers’ market.”