The average house price has reached £181,619, overtaking the previous peak from November 2007 by less than £1,000.
But sales continue to fall, with the number of completed house sales in England and Wales during June decreasing by 19 per cent to 57,180.
The region with the biggest annual price increase was London, with a rise of 9.2 per cent, bringing the average house price in the capital to £481,820.
Meanwhile the cheapest part of England and Wales is the North East, where house prices increased by only 2.4 per cent on the previous year to £102,064. The smallest increase was in Yorkshire and the Humber, where house prices only went up by 1.4 per cent to £121,070.
On a monthly basis, house prices increased by 1.1 per cent between May and June.
Bob Pannell, chief economist at the CML, has said the issue facing the housing market is one of affordability, which has been visible in housing transactions easing back.
He said: “House prices have been elevated relative to earnings for some considerable while.
“With house price inflation outstripping income growth across large parts of the country, it was always likely that household demand would start to fade as affordability pressures intensify.
“We judge that the lull in first-time buyers and movers is now drawing to a close.
“A key part of our narrative is that regulated house purchase activity will slowly retrace its 2014 levels through the second half of this year and into 2016, supported by a benign economic backdrop, alongside government housing measures.”
Adviser view
Jonathan Harris, director of London-based Anderson Harris, said: “It is a lack of stock that is driving up prices.
“The 2007 peak was quite a long time ago now, and we have had another boom period followed by a flattening out over the last six to nine months, so I don’t see that the market is overheated.”
