House prices were up 1 percent in June from May, bringing the annual pace of price growth to 11.8 percent, up from 11.1 the previous month.
Homebuilder Persimmon chief executive, Jeff Fairburn, told CNBC the situation is clearly very different in London compared to the rest of the U.K, where the group operates.
"Actually the real price inflation on our houses for sale is fairly muted and we would estimate that so far this year we have only seen about 1 percent increase. ONS statistics indicate around 2 percent for the last 2 months, it is at a very manageable level outside of London," Fairburn said.
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Nationwide chief economist, Robert Gardner, said prices in the capital are now 30 percent above their 2007 peak, compared to less than 1 percent above their pre-crisis peak in the rest of the U.K.
Gardner also said the Bank of England's (BoE) new restrictions, such as a lending cap of 4.5 times a borrowers' income, brought in to try and cool the housing market are unlikely to have a "significant impact" in the near term.