House prices across the UK hit a record high in August, according to the latest figures from the Office for National Statistics (ONS).

The ONS said that its house price index, which measures purchases financed with mortgages over the month, stood at 185.8, surpassing its previous peak in January 2008 by 0.3 per cent.

According to the figures, the rate of house price inflation gathered pace during the summer months of 2013, with the year-on-year increase reaching 3.8 per cent in August, up from 3.3 per cent in July.

It was no surprise that the annual house price increases in England were driven by London, up 8.7 per cent.

The average price of a house or flat in the UK is now £247,000, the ONS said.

In August 2013, prices paid by first-time buyers were 4.9 per cent higher on average than the same month a year ago.