The average UK property price has hit a record high level of £294,845, said Halifax.

House prices increased by 1.8% in June, the twelfth monthly rise on the run.

The annual rate of house price inflation is now 13% – it’s highest level sine 2004, said the lender.

Northern Ireland continues to post the strongest growth in the UK, while London has the lowest.

Richard Eagling, personal finance expert at NerdWallet said: “All the speculation is that the UK property market is on the cusp of a slowdown. These figures continue to defy these suggestions, and they are unlikely to encourage prospective first-time buyers.

“The signs of a cooling market may start to appear in the coming months, but for first-time buyers, these are unlikely to be apparent for some time. However, being proactive and weighing up all available options is a good place to start. Consequently, they will strengthen their buying position if house prices decline in the future.”

Russell Galley, managing director of Halifax, added: “The supply-demand imbalance continues to be the reason house prices are rising so sharply. Demand is still strong – though activity levels have slowed to be in line with pre-Covid averages – while the stock of available properties for sale remains extremely low.

“Of course, the housing market will not remain immune from the challenging economic environment.
“While it may come later than previously anticipated, a slowing of house price growth should still be expected in the months ahead.”