House prices set record high but market slows - official figures

The annual rate of UK house price growth accelerated in February to push the average value of a property to a record high of £217,502.

The Office for National Statistics (ONS) said that while the rate of growth picked up to 5.8% - up 0.6% on January - market commentary had since suggested that activity was slowing amid economic uncertainty and continued tight supply in the market.

It was supported by data from the Bank of England which highlighted a fall of more than 5% in mortgage approvals during the month.

The annual growth figure, while higher, also represents a slowdown on the 7.3% growth achieved by the UK market in 2016.

London continued to drag in terms of growth - at an annual rate of 3.7% - below that seen in many English regions including the South West, Midlands and North West.

That has been attributed to property prices being seen as increasingly unaffordable in the capital after years of double-digit growth - with average prices at £475,000.

Foreign buyers have also been put off by economic uncertainties and Government measures, despite prices becoming more competitive because of the pound's weakness since the Brexit vote.

The ONS said house prices in Wales rose by 1.8% over the previous 12 months while those in Scotland stood at £139,000 - up by 3.1%.

The average price in Northern Ireland was £125,000, marking a 5.7% annual increase.