House prices rose by 1.2 per cent during May as growth continued to be driven by properties at the bottom end of the market, figures have shown.

The Office of the Deputy Prime Minister said the average home in the UK cost £170,719, 12.2 per cent more than a year ago. Price growth was strongest at the lower end of the market, with the cost of a flat rising by 3.5 per cent during the month, while the price of a terraced house increased by 1.8 per cent.

The price of a detached house fell by 0.4 per cent in May.