House prices increased by 10.5pc over the year

According to the lender, Nationwide, house price growth has gone into double-digits for the first time in almost three years.

Nationwide, said that the 10.5 per cent growth in average annual prices was the highest since June 2007.Property values grew by 1 per cent in April to an average of £167,802, bringing them to within 10 per cent of their peak in October 2007.

Prices have risen by 6.7 per cent during the life of the last Parliament — half the rate of inflation over the period, which reached 13.5 per cent on the consumer price index.

Martin Gahbauer, chief economist at Nationwide, said: “Given the very strong performance of house prices from May 2009 onwards it will take monthly increases in excess of 1 per cent for the annual rate of inflation to be maintained in double digits going forward.”