House prices are only £15,000 off their 2007 peak, data from the Assetz House Price Watch shows.
The average price of a home in July costs £200,913, only 6.6% below the peak of the market – £215,089 recorded in October 2007.
Average house prices were 6.1% higher in July than at the same time in 2009, but annual growth has slowed in recent months.
Prices are up over 3% since the start of the year.
Annual growth rates point to continuing market stability, with the six month rolling average now showing 4%.
Annual average data shows that UK house prices have reached more sustainable levels, compared to the large fluctuations witnessed earlier this year.
Stuart Law, chief executive of Assetz, says: “UK house price growth continued to slow in July, however, prices remain strong despite the very minor slip in month on month figures – indicative of the usual summer slowdown and as a result of the greater than normal confusion over the election period.
“The government’s austerity measures are likely to hold down house price growth in 2011 but we are yet to see these cuts reflected in the monthly data. Continued low interest rates and a lack of supply will boost prices this year and for this reason, contrary to most commentators, I still expect to see 5% overall growth for 2010.”
As a compilation of data from five of the major house price indices to offer a more accurate picture of house price trends.