This is compared with a rise of 8.4% in the year to July. In the month to August there was a rise of 0.7% in house prices, matching the seasonally adjusted increase observed in the same month last year.
In August the seasonally adjusted index (the best indicator of trends in house prices over time according to the CLG) was 4.0% below the recent peak in April 2008, but 11.9% above the recent trough in April 2009.
Average house prices rose in all UK countries except Northern Ireland in the year to August 2010. There was annual house price growth in England (9.3%), in Scotland (0.4%) and in Wales (9.0%) whilst prices fell in Northern Ireland by 18.8%.
Average mix-adjusted house prices rose in all English regions in August with the exception of London and the East Midlands. All regions saw increases in average house prices over the year to August, the largest being in London (12.4%) and the smallest in Yorkshire and the Humber (3.8%).
Annual growth in UK house prices for first time buyers was 8.2% in August compared to 7.5% in the year to July.
Between July and August 2010 the average price of properties bought by first time buyers grew by 0.6%, matching the increase observed during the same period last year.
Annual growth for former owner occupiers was 8.3% in August compared to 8.7% in the year to July. Between July and August 2010 the average price of properties bought by former owner occupiers increased by 0.4% compared to a 0.6% increase in the same month last year.
Commenting, Alison Beech, business relationship director, Spicerhaart and Valunation, said: “With the latest positive figure from CLG added to the pile, the house price indices for August have reported a fairly even spread of upward and downward movement, confirming that we should take a step back from one-off statistics that only capture a small and distinct snapshot of the market.
“The outlook for property prices over the remainder of the year is far from clear, although confidence remains subdued and talk of a double dip continues to rumble on. With market activity patterns becoming increasingly localised, it is vital that lenders and surveyors operate on a micro level in order to determine the most realistic property values.”
