UK house prices hit record level, says ONS

UK house prices have risen to a record level, according to the Office for National Statistics (ONS).

In August, the ONS's house price index stood at 185.8, surpassing its previous peak of 185.5 in January 2008. The average price of a house or flat in the UK is now £247,000, the ONS said, the highest figure since the index was first calculated in 1968.

The figures suggest house prices are rising in England, Wales and Northern Ireland, but still falling in Scotland.

Prices across the UK rose by 3.8% in the year to August 2013, up from 3.3% in July. However, excluding London and the South East - where property values have seen the biggest increases - prices rose by just 2.1%.

Calculations Other measures, including surveys from the Halifax and Nationwide, indicate that house prices are still well below record levels.

Earlier this month, the Halifax reported that the average price of a house was £170,733, nearly £30,000 short of the peak seen in July 2007.

The difference in average prices is due to the different methodology used by the ONS. The ONS index is calculated on actual transaction prices, whereas the Halifax and Nationwide use mortgage approvals. The ONS figures are also higher because expensive properties in London get a larger weighting in their calculations. The number of transactions is also well below that seen at the height of the housing boom.