UK house prices increased by almost 10% in the 12 months to April 2014, up from the 8% annual amount recorded in the previous month, according to the latest published index.

Overall nationwide price growth was 9.9% and the data from the Office of National Statistics confirms that London has been leading the growth at 18.7% with a rise of 8.9% in the South East and 8.5% in the East of England.

House price annual inflation was 10.4% in England, 3.3% in Wales, 4.8% in Scotland and 2.6% in Northern Ireland. Excluding London and the South East, UK house prices increased by 6.3% in the 12 months to April 2014 and on a seasonally adjusted basis, average house prices increased by 2% between March and April 2014.

In April 2014, prices paid by first time buyers were 10.7% higher on average than in April 2013 while for existing owners prices increased by 9.5% for the same period.

More recent data, notably from the Nationwide Building Society and Rightmove suggest that the growth in London is now slowing. Knight Frank has also said that it expects price growth in some London markets to slow and even stall in coming months.

Peter Rollings, chief executive officer of Marsh & Parsons, believes that a turning point has been reached. After a very lively start to the year, where an acute lack of supply and subsequent competition for homes pushed prices higher, we’re now sailing into steadier waters,’ he said.

‘Stricter controls for mortgage affordability and the renewed housing stock is moderating the market and property price growth has slowed. As a result, in prime London the ratio of registered buyers per available property has fallen from 24 in January 2014 to 16 in June, so as the market returns to more normal trading conditions, buyers can make the most of the extra breathing space,’ he explained.

‘London has long been akin to its own city state, and is wholly unrepresentative of the broader nationwide picture. If the government or the Bank of England were to slam their foot on the brake too heavily, they risk setting back the emergent housing market recovery outside of the capital. In his Mansion House speech, the Chancellor indicated that he will not tinker with the Help to Buy scheme, which is buoying the lower end of the market and helping redress the imbalance across the country,’ he added.

Oliver Atkinson, director at online estate agent urban sales and lettings, said it is too soon to say that the market is cooling. ‘There is no let down in demand as first time buyers and second steppers continue to make strides in the property market across the country. Thanks to a gradual improvement in consumer confidence, discerning first time buyers are saving harder and borrowing more to pay a higher price for their property,’ he pointed out.

He also pointed out that the long term effects of the recently introduced MMR lending rules will now be the real test…