It marked the eighth month in a row where house prices were higher than a year earlier and meant that values have recovered to the levels recorded in July and August 2006 – a year before the credit crisis struck. London had the biggest annual rise, with average prices up by 12.2%, while the smallest increase was registered in the North East, where properties cost 0.7% more than the same time last year..

However, monthly rises have been slowing since the market began to pick up last year with prices stalling in March after a 2.1% leap at the start of the year and the height of the spring selling season saw growth reach just 0.2%.

So is this all part of an upwards trend or is it something else? Well the National Institute of Economic and Social Research reckons that house prices will actually fall by 8% over the next five years, taking inflation into account while Halifax say that property prices actually fell by 0.6% in June, the third drop in as many months.

While the Halifax figures can rise or fall depending on homesellers' expectations, the Land Registry figures actually reflect what a property sells for, rather than its asking price, so the two are not necessarily conflicting.

It does look like a slowdown however, as everyone expects the Government's austerity measures to pinch. It's just a matter of waiting to see how the full effect of public sector cuts affects the housing market.

Only time will tell.

In the meantime, you can check out what is happening to house prices in your area on this website.