The Nationwide Building Society has reported that the price of a typical UK home increased by 1% in April, the largest monthly increase since June 2014.
As a result, the annual pace of house price growth increased for the first time in seven months, edging up to 5.2% from 5.1% in March.
The average price of a home in the UK (not seasonally adjusted) was £193,048 in April, the mutual said.
Robert Gardner, Nationwide’s chief economist, said: “The pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months. Indeed, the number of mortgage approvals is still well below its long run average and 20% below the levels recorded in early 2014.
“The strength of the economy and relatively subdued pace of activity in the housing market remains something of an anomaly. It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous UK elections to suggest a strong impact.
“Healthy labour market conditions and continued low mortgage rates should help underpin housing demand in the quarters ahead.”
Jeremy Duncombe, director of Legal & General Mortgage Club, added: “Although house price rises in recent months may seem subdued when compared to last year, prices are still rising well above the level of inflation. This is due to a surplus in demand which is outpacing the supply of new houses. This imbalance in the housing market has pushed up the average asking price in April, making homeownership a more distant dream for many potential buyers.
“It’s encouraging to see that political parties are talking about building more properties in the run up to the election. However, we need to ensure that house building remains at the top of the agenda throughout the next parliamentary term so a good supply of new properties is built and the issue is not forgotten about after the electioneering is over.”