The Bank of England report shows homeowners are encouraged by the low interest rates to repay mortgages to lenders.
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Latest figures from the Nationwide show house price growth is at a two year low bringing average prices to £195,055.
The booming buy-to-let market and ease investors can secure mortgage loans could undermine the UK economy when interest rates rise.
The Land Registry data shows house prices for homes in east of England up 1.6% with London gains of 9.1% in the last year.
Prices of homes in Kensington and Chelsea are 1,500% more than Blaenau Gwent in Wales emphasising the divide across the country.
Annual house price rise in April is 5.5% down from 9.6% in March, says ONS, while the number of Help to Buy completions have decreased.
Data from the Nationwide building society show a slight fall in house prices in May while cash buyers represent four out of ten purchases.
The number of mortgages approved in April increased 9.9%, the highest monthly rise for six years according to the Bank of England.
Property prices have continued to grow since the election with annual growth at 5.1% and set for a surge for the rest of the year.
Tax breaks add £14 billion to landlord buy-to-let income boosting the sector while first time buyers are priced out of the market.