UK house prices rose at their fastest annual rate in 18 months in September, with prices in London continuing to lead the way, official data shows.
The Department for Communities and Local Government said house prices rose 8% year-on-year in September compared with a downwardly revised 7.4% in August - the highest since March 2005.
That took the average house price up to £198,552 (€294,330) in September from £197,009 in August.
Annual house price inflation in London accelerated to 9% from 7.6% in August - also an 18-month high.
The figures back up surveys from mortgage lenders Halifax and Nationwide that reported housing market activity has not been dampened by higher borrowing costs.
Analysts said if last week's interest rate rise to 5% did not cool the market, policymakers would be tempted to raise rates again early next year.
