What downturn? House price growth has hit its highest level since October last year
The UK's average house price now sits at £222,293, after rising by 1.1 per cent last month
HOUSE prices jumped in August at the fastest pace this year, adding to signs that the housing marking is regaining strength.
House prices increased 1.1 per cent from July, the biggest one-month rise since December and building on July's 0.7 percent increase, Halifax said.
The UK's biggest mortgage lender found that annual house price growth also went up to 2.6 per cent from 2.1 per cent in July.
The UK's average house price now sits at £222,293, after rising by 1.1 per cent last month.
House prices have grown massively over the past decade but the market has seen a slight downturn recently thanks to Brexit uncertainty.
"Recent figures for mortgage approvals suggest some buoyancy may be returning, possibly on the back of strong recent employment growth, with the unemployment rate falling to a 42-year low," said Russell Galley, managing director of Halifax Community Bank.
But he warned that falling wage growth, when adjusted for inflation, would limit the affordability of houses for some buyers.
What does this mean for house prices now?
The data from Halifax is one of many house price indexes. It shows that housing market has defied the usual slower summer trends to show strong growth on a monthly and annual basis.
This means we may see some degree of normality returning to the market, as house prices continue to grow.
While continued growth is good for homeowners, it might not be good for those trying to get on the ladder.
Jeff Knight, director of marketing at Foundation Home Loans, said: "Continued growth will be good news for some homeowners, but may hinder a move up the ladder for others."
"It will also increase deposit sizes for first-time buyers, who are seeing deposits eroded with more challenging inflation versus low deposit rates."
BUILDING BLOCKS New tool reveals how to add as much as £44k to the value of your home
One of the other struggles for the housing market, which is impacting on house prices, is the number of homes for sale.
This has dropped over the last few years and could also have an impact on prices in the near future.
And other experts have warned that this and the fact that lenders are ditching low mortgage rates could also cause growth to slowdown.
Jeremy Leaf, north London estate agent and former RICS residential chairman, said: "‘The short-term impact of Brexit on the housing market was probably overestimated but the longer term effects may have been underestimated.
"But, now that the government is negotiating the UK’s exit from the EU, further uncertainty seems inevitable until the final outcome becomes clearer."
MORE ON HOUSE PRICES
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516