House price annual inflation was 11.0% in England, 6.5% in Wales, 3.6% in Scotland and -0.7% in Northern Ireland.
House prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth.
Annual house price increases in England were driven by a record annual increase in London of 20.1% and to a lesser extent increases in the South East (9.6%) and the East (8.6%).
Excluding London and the South East, UK house prices increased by 6.4% in the 12 months to May 2014.
On a seasonally adjusted basis, average house prices increased by 0.8% between April and May 2014.
In May 2014, prices paid by first-time buyers were 11.3% higher on average than in May 2013. For owner-occupiers (existing owners), prices increased by 10.1% for the same period.
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"With first-time buyers now paying an average of £202,000 to get on the housing ladder, in some ways it's harder than ever to take that first step. However, lenders have stepped up to the plate with more higher loan-to-value products available now than four or five years ago, with family-assisted schemes and offset products, as well as government schemes such as Help to Buy. The important thing is that buyers must be able to afford the mortgage now, as well as in the future.
"While it still looks as though the first rate rise won't come before the middle of next year at the earliest, fixed-rate mortgages are becoming more expensive, and will continue to do so. However, borrowers shouldn't panic as five-year fixes are still available for a little over 3 per cent - historically, an excellent rate. Borrowers might want to secure a fix now though if they need certainty rather than waiting several months to see what happens. Ultimately, there is only one way for interest rates to move and that's upwards - it's a question of when this will happen."
Jonathan Samuels, chief executive of Dragonfly Property Finance, said:
"Annual house price growth of 20.1% is borderline insane, but there are signs that the capital started to cool slightly in June and July. I would expect next month's figures to show a less dramatic rate of growth.
"Things certainly have to calm down in the capital. 33.7% higher than the pre-financial crisis peak is mind-boggling. Remove London and the South East and annual house price inflation of 6.4% is much more stable and sustainable. These are words that London doesn't appear to recognise.
"With interest rate rises to come and mortgage advances more conservative, things may well come under control yet. But since when did the property market listen to reason?"
