UK house prices increased by 0.8%, or £2,200, in July, compared to the previous month, according to Halifax.
The UK’s largest lender said that the typical property now costs £291,268 compared to £289,042 in June.
And prices are now 2.3% higher than a year ago.
Amanda Bryden, head of mortgages at Halifax, said: “Last week’s Bank of England base rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder.
“However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.
“Against the backdrop of lower mortgage rates and potential further base rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year.”
Across the UK
Northern Ireland recorded the strongest annual house price growth in the UK at 5.8%. The average price of a property in Northern Ireland is now £195,681.
House prices in the North West also recorded strong growth, up 4.1% over the last 12 months, with properties now averaging £232,489. In Wales, house prices grew 3.4% to £221,102.
Scotland saw a 2.1% annual rise in house prices, with a typical property now costing £205,264.
The only region or nation to see a fall in prices was Eastern England. Properties here now average £330,282, down -0.4% on an annual basis.
London continues to have the most expensive property prices in the UK, now averaging £536,052, up 1.2% in the last year.
Nathan Emerson, CEO at Propertymark , said: “It is extremely positive to see further growth within the housing sector, especially following what has been a tough time across the last few years for consumers.
“Assuming the economy remains stable in September, it would be good to see the central bank continue to gradually cut interest rates as conditions permit.”
