According to the Halifax House Price Index, the rate of house price growth in the UK increased in the year to August 2017.

Monthly home sales in the UK have edged up to 104,760, the highest level since March 2016 with the three months to July 2017 seeing activity 10% higher than the same period last year.

The number of mortgage approvals for house purchase also grew sharply, by 5.2% to 68,700 between June and July 2017.

“The annual rate of growth increased from 2.1% in July to 2.6% in August with

the average house price now £222,293, which is just above the previous high

of December 2016 (£222,190),” said Russell Galley, Managing Director, Halifax Community Bank. “Recent figures for mortgage approvals suggest some buoyancy may be returning, possibly on the back of strong recent employment growth, with the unemployment rate falling to a 42-year low. However, wage growth is still lagging increases in consumer prices, which is likely to add pressure on household finances and increase affordability challenges for some buyers.”

Mr Galley added; “House prices should continue to be supported by low mortgage rates and a continuing shortage of properties for sale over the coming months.”