Official figures show that house prices rose by 1.8% in the 12 months to August, down from a 2% increase in July.
The average house price in the UK now stands at £234,000, according to the Office for National Statistics' House Price Index.
Annual house price increases in England were driven by a 6.3% rise in London and increases in the South East and West Midlands of 2.4% and 1.2% respectively.
Prices fell by 0.7% in the South West and by 0.5% in both the East Midlands, and Yorkshire and the Humber.
Prices of new-build homes rose by 3% during the 12 months to August, while the price of pre-owned dwellings increased by 1.7% over the same period.
In August, prices paid by first-time buyers were 2.9% higher on average than in August 2011. For owner-occupiers (existing owners), prices increased by 1.4% for the same period.
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