UK house prices have risen to record levels

According to the Office for National Statistics, UK house price index stands at 185.8. This is higher than the previous peak of 185.5 in January 2008.

15:12 15 October 2013

In another sign that the UK economy is on its way to recovery, the Office for National Statistics (ONS) has now revealed that UK prices have risen to record levels. The previous highest peak was recorded in January 2008 was 185.5. Recently, the price index stood at 185.8.

However, the news may add concerns that the UK might be at risk at facing a house price “bubble” – a theory shrugged off by others.

Howard Archer, the chief UK economist of IHS Global Insight, said: "We are a long way off from an overall housing market bubble emerging."

"There is a significant risk that house prices could really take off over the coming months, especially if already appreciably improving housing market activity and rising buyer interest is lifted markedly further by Help to Buy.”

ONS added that the average price of a house or flat in the UK today is £247,000. This is the highest figure since the index was first calculated in 1968. Prices across the UK have increased by 3.8per cent in the year to August 2013.