Latest figures have revealed there was a 5.5% rise in house prices in December, compared with a year earlier.
Demand from potential new buyers registering with agents has fallen for three months in a row
House prices are falling and more drops are expected in the coming months, according to surveyors.
House prices in the South have hit an all time high due to prices in London increasing too.
A national rise of 2.6% this month pushes the average national price of property coming to market to £262,594.
This is the highest since October 2007.
Miles Shipside, Rightmove director and housing market analyst said, "Records are tumbling, with a new national asking price record being set for the second consecutive month.
"London's asking prices are at their highest ever level, and the strong ripple effect from the capital has also caused a new wave of record prices for property coming to market in the South East, South West and East Anglia."
The Thames Valley is experiencing a house price boom, with prices rising at their fastest level for 14 years. That's great news if you own your home, not so good if you're looking to buy.
In Reading the average house now costs £200,000. In Bracknell it is £220,000.
While in West Berkshire and Newbury the average is £244,000.
So what does that mean to buyers? Mel Bloor has been out in Reading to find out.
In places like Spain and Greece, property prices have crashed and it's tempting many from our region to consider buying a holiday home there.
But it's not without risk - as ITV's Tonight programme found out in a special investigation. Kerry Swain has more details.
A 6.2% annual rise in prices in September takes average house values to £170,733 and represents the biggest year-on-year increase since 2010, the lender said.
The latest increase follows a 5.4% annual rise in August, which like September's increase was the strongest rate since June 2010.
On a month-on-month basis, prices rose by 0.3%, equalling the increase in August and marking the eighth month of rises in a row.
Fears have been growing that some stronger than expected price rises this year could be leading to a bubble, with borrowers over-stretching themselves.
The Government has brought forward the launch of the new phase of its flagship Help to Buy scheme from January to next week, and concerns have been raised about the further upward pressure this will place on house prices as demand is stoked further.
The new scheme will stimulate the whole housing market by offering state-backed mortgages to people with deposits as low as 5% who want to buy a new-build or an existing home.
House prices are 5.4% higher than last summer, figures from the Halifax showed last week. The lender said prices rose 0.4% in August from July, the seventh consecutive monthly increase, resulting in an average figure of £170,231.
New Bank of England governor Mark Carney recently addressed concerns that Government stimulus measures risk stoking another property bubble.
He said the Bank is "acutely aware" of the potential threats and said action will be taken to clamp down on mortgage lending if needed. RICS said the increase in supply was not enough to keep pace with the "sheer weight of demand".
All regions of Britain saw greater numbers of homes come onto the market, with sharp rises in the south west and north east in particular. Surveyors expect prices to continue rising, with a balance of 45% predictingprice rises rather than falls over the next three months.
A report by planning consultants is warning of a shortage of 20,000 homes in the South East in the next five years.
Comparing land freed by councils with predicted demand, it estimates a shortfall of 8,000 homes in Kent, just 260 in East Sussex but 12,500 in West Sussex.
John Ryall spoke to Ryan Johnson of Turley Associates and Richard Knox-Johnston, chairman of CPRE Protect Kent.
VIDEO: A new survey by the Royal Institute of Chartered Surveyors is predicting that the average house price could rise by about two per cent this year. The average cost of a home in this region is just under £300,000. Malcolm Shaw reports.
London & the South East dominate the least affordable areas, with mortgage payments in Kensington & Chelsea typically standing at 76.6% of disposable earnings.
Overall, mortgage payments have nearly halved as a proportion of income over the past 5 years from a peak of 48% seen in the autumn of 2007.
Mortgage payments for new borrowers are at their lowest as a proportion of disposable earnings for 15 years, a study said today.
Typical payments for both first-time buyers and home movers taking out a new loan stood at 26% of take-home pay in the second quarter of this year, Halifax said.