House prices in the three months to August were 3.0% higher than in the previous quarter, according to the latest Halifax House Price Index.
This measure of the underlying rate of house price increased from last months 2.5% but remained below Junes 3.3%.
Prices in the three months to August were 9.0% higher than in the same three months a year earlier.
The average monthly costs associated with buying a three bedroom house in the UK for a first-time buyer are £56 lower than the typical monthly rent paid.
The average price of a home is now £204,674.
Martin Ellis, Halifax housing economist, said: “The underlying pace of house price growth is strong. The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices. At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand.
“Strengthening demand and highly constrained supply are likely to mean that house price growth continues to be robust in the short-term.”
