The average house price in England and Wales rose by 8.4% to almost £178,000 in the 12 months to August, according to the latest Land Registry figures.
This is less than £4,000 below the all-time high recorded in late 2007.
The figures showed that typical values were up by just 1% on July, however, adding weight to the idea that the UK housing market was slowing down.
Last week, Hometrack reported that house prices had remained static in September.
But Land Registry figures reflect sales completed during August, and many of these deals will have been struck weeks if not months earlier.
Jonathan Hudson from estate agent Hudsons Property said: "The annual 8.4% increase in August will be from transactions agreed a few months earlier, so it will be interesting to see how these figures match up in a few months' time, due to a drop in buyers in the last quarter compared to the recent boom years."
The statistics confirmed the rapid price growth in London: in the year to August, values were up almost 22% in the capital.
James Hall, director of London estate agent Fishneedwater, said: "The Land Registry's definitive house price data confirms that the London market has moved from wobble to warp drive.
"Any fears of cooling have been forgotten as price inflation continues to crank up to breathtaking heights. Supply is strong as sellers decide that now is the time to cash in, and, despite tougher lending conditions, demand is still shows no signs of dwindling.
"Elsewhere in the country, there is a greater sense of sanity, with steady rates of growth now spreading even to the areas worst affected by the crash."
Jonathan Samuels, chief executive of Dragonfly Property Finance, added: "Prices in all regions of the UK are positive on both a monthly and annual basis, but growth of nearly 22% in the capital over the past 12 months has once again stolen the day.
"Prices in the boroughs of Lambeth and Lewisham are up by nearly 30% over the past year, which is frankly mind-boggling."
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