The latest Halifax House Price Index has reported that house prices in the three months to June were 3.3% higher than in the preceding three months.
This measure of the underlying rate of house price growth picked up following two successive falls. Annual house price growth also increased to 9.6% from 8.6% in May and is at its highest since September 2014.
House prices increased by 1.7% between May and June; the fourth consecutive monthly rise.
The average price of a home is now £200,280.
Martin Ellis, housing economist, said: “Supply remains very tight with the stock of homes available for sale currently at record low levels. This shortage has been a key factor maintaining house price growth at a robust pace so far in 2015.
“Economic growth, higher employment, increasing real earnings growth and very low mortgage rates are all supporting housing demand with signs of a recent modest pick-up in demand.”
Jeremy Duncombe, director of Legal & General Mortgage Club, added: “With continued house price growth following the election, the market remains unaffordable for many. A projected surge in demand in the second half of the year will work to further exacerbate this issue by pushing house prices even higher. The best way to bring long term stability to the housing market is to boost the supply of new homes in order to keep up with demand.
“First-time buyers are having difficulty getting on the property ladder, particularly in rural areas as shown by the recent National Housing Federation research. As a result, many younger people are forced to wait until later in life to buy their own home. The day when these young people are able to realise their dream of homeownership may never come unless the government follows through on its pledge to build more houses. We hope to see housebuilding at the heart of today’s Budget, along with a concrete strategy on how the government plans to deliver on their promise to boost supply.”