The Halifax has reported that house prices in the latest three months were 2% higher than in the preceding three months (December 2013-February 2014).

According to the index, house price change on this measure has now remained steady in a narrow range of 1.9% – 2.3% since June 2013.

Prices in the three months to May were 8.7% higher than in the same three months a year earlier. This was marginally higher than in April (8.5%).

After falling in the previous two months, average price increased by 3.9% in May – this was the third monthly price rise since January. Monthly movements, however, can be volatile and the quarter on quarter change is a more reliable indicator of the underlying trend, the Halifax said.

Home sales edged down by 1% in April to 103,690, however, transactions are still a third higher than in April 2013. Annually, transactions grew to 1.142 million in the year to March 2014 – a rise of 23% from the same period a year earlier.

Stephen Noakes, Halifax’s mortgages director, said: “On an annual basis housing demand is still strong and continues to be supported by a strengthening economic recovery. Consumer confidence is being boosted by a rapidly improving labour market and low interest rates, although growth in average earnings still remains weak.

“However, there are signs of a revival in housebuilding which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term.”