House prices in the UK increased by 3.7% year on year in August and were also up month on month by 0.1%, according to the latest House Price Index (HPI) from Halifax.

The data also reveals that on a quarterly basis prices rose by 1.9%, taking the average price of a home in the UK to £229,958.

Russell Galley, managing director at the Halifax, pointed out that the annual rate of growth increased from 3.3% in July. He added: “While the pace of employment growth has recently slowed, a low unemployment rate and a gradual pickup in wage growth are helping to support household finances. This has been accompanied by interest rates still remaining at a historically low rate and a stable, yet constrained, supply of new homes onto the market further supporting house prices.”