That’s according to Halifax, which added that year-on-year prices are up by 4.3%, the strongest rate since November 2022.
However, the lender admitted that this high annual growth reflects the comparison against weaker prices a year ago.
Amanda Bryden, head of mortgages at Halifax, said: “Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years.
“Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.”
Alice Haine, personal finance analyst at Bestinvest, added: “Strong demand for properties is being matched by a surge in listings as sellers, previously sitting on the sidelines as they waited for market conditions to improve, are now making a move.
“Providing the economy continues its recovery, with robust economic growth recorded in the first half of the year and inflation falling to more palatable levels, housing market activity is expected to continue strengthening in line with easing affordability levels.”
Nations and regions
Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by 9.8% on an annual basis in August to £201,043.
House prices in Wales were up 5.5% compared to the previous year, with properties now costing an average of £224,433.
Scotland saw a more modest 1.7% rise in house prices to £205,144.
The North West recorded the strongest house price growth of any region in England, up by 4% over the last year to £232,917.
The weakest growth was in Eastern England, where prices inched up 0.3% to £330,511.
In London, prices rose by 1.5% to £536,056.
