According to figures from Nationwide Building Society, house prices are rising by three times the level they were at this time last year.
In August, property values increased by 0.8 per cent, pushing annual growth levels up to 6.6 per cent and signalling the third successive month of rising house prices.
Fionnuala Earley, Nationwide's group economist, said that the rates rise may be a sign for caution in the housing market and buyers may be inclined to wait in case prices fall back from current highs.
However, she also noted that there was unlikely to be a repeat of the 2004 slowdown when fears that the property bubble was about to burst began to surface in many quarters.
"The underlying market remains fairly firm," Ms Earley said, noting that the average UK house was now valued at £167,721.
This price is over £10,000 higher than in August 2005, the equivalent of a rise of almost £30 a day.To read more about property, click here.
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