The average price for a new property reached a record high last month, according to the latest monthly index.

Figures from SmartNewHomes.com revealed that the cost of a new home rose to £260,832 over the course of May – the highest average price ever recorded in the study.

Managing director David Bexon claimed that areas across the country witnessed house price growth, which may consequently impact upon consumers’ ability to meet deposit costs and make secured loan repayments.

The study indicated that the south-west of England and East Anglia in particular are property "hotspots" as average pieces for new homes have risen by 12.2 and 12 per cent respectively since last year.

He suggested that consumers "are increasingly unable to afford to step up the ladder" in London and thus are starting to look to move away from the capital.

Mr Bexon also reported that the effects of last month’s interest rate rise are yet to be felt on current house prices.

Earlier today, the Council of Mortgage Lenders announced mortgage borrowing via secured and home loans over the duration of May reached a record amount.

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