The Halifax has reported that house prices in the three months to August were 2.1% higher than in the previous three months.
Meanwhile, prices in the three months to August were 5.4% higher than in the same three months last year, the highest annual rate since June 2010.
House prices rose by 0.4% in August. This was the seventh consecutive monthly increase.
Martin Ellis, housing economist, said that housing market activity is also on an upward trend with the number of mortgage approvals for house purchases – a leading indicator of completed house sales – 10% higher in the three months to July compared with the previous quarter after allowing for seasonal influences.
He added: “Economic improvement and low interest rates, supported by official schemes such as Funding for Lending and Help to Buy, appear to have boosted housing demand in recent months.
“Nonetheless,relatively modest economic growth and below inflation rises in earnings are likely to act as a brake on the market. Overall, house prices are expected to rise gradually over the remainder of the year.”
