House prices had remained stagnant in the three months to July, Halifax said. The lender’s data showed house prices are on a slow recovery after a mild downturn last year.
Amanda Bryden, Halifax’s head of mortgages, said: “In July, UK house prices increased by 0.8pc on a monthly basis, following three relatively flat months.
“The average house price in the UK is £291,268, up over £2,200 compared to the previous month.
“Annual growth rose to 2.3pc, the highest rate since the start of this year.
“We anticipate house prices to continue a modest upward trend throughout the remainder of this year.”
High demand and low supply for housing in some parts of Britain has meant house prices remain “remarkably robust” despite high interest rates, said Andrew Montlake of mortgage broker Coreco.
He added: “ As we approach a period where interest rates are falling, all that pent-up demand is starting to feed through. High-demand areas where there is a shortage of properties to buy could see larger house price rises.
“For those looking at buying, the next few months will prove to be a good time to buy, especially when looking back in hindsight in five years’ time.”