House prices climbed at their fastest pace since December 2022 in the year to August, figures from Nationwide showed on Friday.
Prices ticked up by 2.4%, meaning houses cost an average of £6,222 more at £265,375, with the increase beating the 2.1% uptick seen in July.
Prices fell by 0.2% month on month when accounting for seasonally adjusted effects, however, and were also down against levels recorded in the summer of 2022 following the pandemic-fuelled property boom.
“While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience,” Nationwide chief economist Robert Gardner said.
This is given the context of high interest and house prices relative to average earnings, he noted.
“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease.”
Bestinvest finance analyst Alice Haine commented the figures showed the property market was in “recovery mode”.
She said: “Another interest rate reduction from the Bank of England sooner rather than later could catalyse the market even further as the lure of cheaper mortgage rates will be attractive for movers who have been waiting patiently in the wings.”