The bank’s latest house price index said the average UK house price in May stood at £184,464, a rise of 3.9% on April’s figure.
Overall, property prices are 8.7% higher than a year ago.
Using a less volatile quarterly comparison, the average price between March and May was 2% up compared to the preceding three months. Halifax said this level of increase had remained steady since June 2013.
“House prices in the three months to May were 2.0% higher than in the three months to February,” Halifax mortgage director Stephen Noakes said.
“The quarter-on-quarter price change is a more reliable indicator of the underlying trend compared to the monthly price movement. Annually prices were 8.7% higher in the three months to May than in the same three months last year.
“On an annual basis housing demand is still strong and continues to be supported by a strengthening economic recovery. Consumer confidence is being boosted by a rapidly improving labour market and low interest rates, although growth in average earnings still remains weak.
“However, there are signs of a revival in housebuilding which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term.”
