House prices shot up by 2.7% in August, according to the Halifax, the highest monthly rise since May 2014.
The surprise leap contributed to a 3% rise in prices over three months and annual house price inflation of 9%. The average house price now stands at £204,674, according to the lender.
“The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices,” said Martin Ellis, Halifax housing economist.
“At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand.”
