According to the latest data released, the total average house prices have reached their all-time high in England and Wales.

The prices have crossed the previous record set in 2008 due to strong demand in London. The new report from LSL Property Services showed that the average house prices in the two countries are now at £232,969, which is£5,796 higher than the previous year and £1,140 higher than the previous record set in February 2008.

The rising prices show that there is stable recovery in the housing market in the UK. The housing market has been improving due to the Bank of England backed Funding for Lending scheme that was introduced in the previous year to boost the market.

The government in the UK has been taking steps to support the housing market by providing backing to the buyers. Cable caused doubts over the new scheme saying that it might increase the price of houses in the country. Chancellor George Osborne had announced the scheme in March budget and there were concerns that it would push up prices as there is less supply of houses.

Under the scheme, people in the UK will be able to buy a home with a 5 per cent deposit and the UK Government will act as guarantor for a mortgage for an extra 20 per cent of the value of the property. The UK housing market is facing a difficult economic situation due to the slowdown in the economy as well as the on-going sovereign debt crisis in the Eurozone. However, government measures and lack of supply has increased the prices and the sector is beginning to show signs of recovery.