According to the Halifax survey, the town in Britain with the cheapest property is Lochgelly in Fife, where the average home costs £104,738, while the average house price for the whole of the UK passed £200,000 for the first time in February this year.
A north-south divide has re-emerged, with London prices rising 14.9% over the past year while average prices in the north of England have risen 5.6%.
Andrew Frankish, managing director of Mortgage Talk, said: "These figures come as no surprise, as we have experienced a continuous growth in property prices for the last five years.
"Although another interest rate rise is widely expected, we are still within the pattern of historically low rates established by the Bank of England some time ago.
"The net result is result is that mortgage payments, expressed as a percentage of monthly salary still remain affordable and, as such, more lenders are basing their lending criteria on the issue of affordability rather than salary multiples, which is absolutely correct."
"However, consumers should learn to expect reduced house price increases over the next few years. This is no bad thing, as a property should be regarded as a home first, and an investment second. Provided that borrowers' expectations are realistic, we will continue with a period of sensible, single digit sustained growth, which is exactly what the market needs," explained Frankish.
"One thing that we won't see is a crash or a serious correction. Interest rates and unemployment are still low but, most importantly, demand for property still outstrips supply. The reasons for this include more people choosing to live alone, plus an influx of workers and families from the newer member states within the expanded European Union, coupled with an ongoing shortfall in the numbers of new properties being built. Unless and until these factors are no longer influential, simple economic forces will continue to ensure a healthy property market," he concluded.
