House prices have grown at their fastest rate since the height of the last property boom, in June 1989.
Prices will slow gradually next year, experts predict. They say we are unlikely to see the spectacular crash some people fear.

In their latest monthly figures, the Halifax and Nationwide – the country's two biggest mortgage lenders – agreed annual price inflation had risen to 21%.

But the Halifax reported a slight slowdown in monthly growth at 1.9%, compared with 2.4% in June.

Halifax chief economist Gary Styles said: "Indicators of housing market activity confirm a buoyant but slowing market."

In response to the continuing uncertainty surrounding global stocks and shares, the Bank of England kept interest rates on hold at 4% for the ninth month in a row.

The Council of Mortgage Lenders also reported that arrears and repossessions had fallen to a 20-year low.

But it warned that the volatile economic outlook meant this was likely to change.