Cheapest areas

1: Blaenau Gwent, �34,865 2: Merthyr Tydfil, �41,052 3: Hull, �41,137 4: Stoke-on-Trent, �42,720 5: Rhondda Cynon Taff, �47,165 Data: Price of average home

The price of London homes grew at 6.65% during the year, slower than in any other part of England.

Property markets in the East and West Midlands, recording growth rates of 15.6% and 15.0% respectively, proved the most buoyant, while the price of Welsh homes rose by only 6.48%.

Growing divide

Kensington and Chelsea, where homes sold between April and June achieved an average �567,952, retained its status as the most expensive area in England and Wales to buy a home.

Most expensive areas

1: Windsor and Maidenhead, �248,945 2: Surrey, �222,318 3: London (average), �205,831 4: Bucks, �198,840 5: Wokingham, �195,121 Data: Price of average home

This area includes the road where a 55,000-square-foot mansion is on sale for �85m.

Indeed, while the rate of house price growth in the capital slowed by 0.5% from the quarter before, the number of London properties sold for more than �1m surged by 77%, suggesting resilient demand at the top of the market.

The average Kensington property is worth 16 in Blaenau Gwent, where homes sold for an average of �34,865 between April and June, 11.9% lower than a year before.

The economy of Blaenau Gwent, a former steel and coal stronghold which includes the town of Ebbw Vale, has been badly hit by cutbacks at troubled steel firm Corus.

Since last year, the area has been overtaken neighbouring Merthyr Tydfil and Kingston-upon-Hull to reach bottom position in the England and Wales property price table.

Growth centres

Outside London, homes in Surrey, selling for an average of �222,318, and Windsor and Maidenhead, for �248,945, achieved the highest prices.

Most expensive London boroughs

1: Kensington and Chelsea, �567,952 2: Westminster, �403,353 3: Camden, �337,911 4: Hammersmith and Fulham, �300,398 5: Richmond, �287,366 Data: Price of average home

Strong rises were seen in Plymouth, where homes sold for 20% more between April and June than a year before, in Bristol, which reported 21% growth, and Buckinghamshire, where prices surged 18%.

The survey also bore good news for owners of new, terraced houses which proved the best investment among the property types, rising in value by 15%.

The prices of flats and detached houses rose by about 10%.