The ONS index shows property values are up 8.7% annually and Luton, pictured, has hugely outstripped this with a near 22% rise
Slough and Luton have seen prices surge as families and commuters target the relatively affordable homes in the areas, despite their proximity to London.
The third biggest riser, the London borough of Newham has also benefitted from being cheaper than neighbouring areas.
The ONS report, which is a new official measure of house prices replacing the previous ONS and Land Registry monthly surveys, said the average house price had reached £214,000 and was up 8.7 per cent annually.
This is almost level with strong growth seen in 2013 and comes despite reports of a slowdown in the property market in the run up to the EU referendum.
Regionally, the East of England saw the highest annual house price inflation at 14.3 per cent, outstripping London’s 12.6 per cent rise.
The figures lag a month behind, meaning the full effect of the Brexit result is yet to be shown, while the methodology changed in June. It saw the ONS and Land Registry indices combine, despite the previous £100,000 gulf in the average house price measure between them.
The main increase came from England, where house values added 9.3 per cent over the year to June 2016, with the average property now carrying a £229,000 price-tag.
Wales saw house prices increase by 4.9 per cent over 12 months to stand at £145,000.
In Scotland, the average price increased by 4.6 per cent over the year to stand at £143,000. The average price in Northern Ireland is currently £123,000.
After the East of England and London, annual inflation was highest in the South East with a 12.3 per cent annual growth.The lowest annual growth was in the North East, where prices increased by 1.5 per cent over the year.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: ‘These figures are interesting to an extent but their historic nature means they don’t really reflect what is happening on the ground now.
‘The sales volumes for April saw a considerable fall in the number of transactions but were affected by the stamp duty hike at the start of that month – the referendum was still some way on the horizon and people weren’t even thinking about it then.
‘There is no doubt that there is too much concentration on pricing and not enough on transactions. House prices have been rising mainly because of shortage of stock.’
The lowest annual growth was recorded in the City of Aberdeen, where prices fell by 6.8 per cent to stand at £178,000.
The next biggest falls were recorded in Kensington and Chelsea, where prices were down 6.2 per cent.
Despite this, it remains the most expensive spot to buy a property in the country, with the average home fetching £1.2million.
In contrast, the cheapest area to purchase a property is Burnley, where an average house cost £75,000.