House prices swung up 1.7% in July compared with the month before, to stand at £175,653, according to the Land Registry.
The organisation puts annual inflation at 7.2% for the 12 months to the end of July.
However, the figure is still below the peak of £181,442 recorded by the Land Registry for November 2007.
London house prices continued to climb the highest, at 3.3% on a monthly basis and by 19.3% over the year. The average London house price in July was £457,072 – more than four times the average house price in the north-east of £100,834.
The most expensive house sold in July was in Knightsbridge, London, at £24.5m. The cheapest was in Bishop Auckland, Co Durham, for £18,000.
House prices went up in all regions apart from Yorkshire & the Humber, where they dipped 0.6% on a monthly basis.
The Land Registry also reports a jump in sales, to an average of 68,448 per month between February and May. In the same period last year, there was a monthly average of 54,334 sales.
In May itself – the latest month for which transaction data is available – there were 72,900 sales.