House price growth jumped to a 14-month high in July, according to the latest official figures.

The Department for Communities and Local Government (DCLG) reported today that annual house-price inflation was 6 per cent in July, up from 5.3 per cent in June – the highest rate since May last year.

London was at the forefront of the boom, with annual growth in the capital at 7.1 per cent compared with 5.5 per cent the previous month.

The average home in Britain now costs £194,454 compared with £191,016 in June.

The figures confirmed evidence from other surveys that the property market was buoyant over the summer, although the DCLG report does not show the impact of the Bank of England’s quarter-point hike in the base rate to 4.75 per cent in August.

The DCLG figures are based on completion prices, whereas surveys from the Halifax and Nationwide look at approvals and therefore give a more up-to-date picture of the property market.

Halifax said last week that growth remained firm in August, despite the base-rate rise, with prices up 1 per cent over the month.

However, the lender thinks annual inflation will ease from 8.2 per cent in August to about 5 per cent by the end of the year as rising utility bills and higher mortgage repayments dampen demand – the Bank of England is also expected to put up rates by a further quarter point in November.

The DCLG figures had a ray of hope for first-time buyers: growth in properties they bought fell from 6.9 per cent in June to 5.6 per cent in July.

House prices are still growing faster than wages, though, so it remains difficult for first-timers to get a foothold on the property ladder.

A spokesman for the Royal Institution of Chartered Surveyors said: "House price rises for first-time buyer properties fell back in July, but at 5.6 per cent they are still running above average wage rises, increasing difficulties for would-be buyers to get on to the housing ladder."

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