The Halifax House Price Index rose 1.5% year over year in May, up from 1.1% in April and exceeding the 1.2% gain expected by analysts.
It marks the sixth consecutive rise in the index for six months. The average UK house price now stands at £288,688.
Month-on-month statistics were less bullish though, with prices having decreased 0.1%, effectively stripping away the 0.1% gain in April.
The North West is the strongest performing nation or region in the UK, where house prices grew +3.8% on an annual basis in May. The average price of a property in the North West is now £232,258.
Credit: Halifax
Amanda Bryden, head of mortgages at Halifax, said: "A period of relative stability in both house prices and interest rates should give a degree of confidence to both buyers and sellers.
While homebuyers and those remortgaging will continue to respond to changes in borrowing costs, set against a backdrop of a limited supply of available properties, the market is unlikely to see huge fluctuations in the near term."