The increase means that the average home was 2.4% more expensive last month than it was a year ago, but this is lower than the 2.7% annual growth rate in June.

UK house prices lifted 0.4% to £298,237 on average in July, which is the highest monthly rise this year, according to the latest Halifax house price index.

The increase means that the average home was 2.4% more expensive last month than it was a year ago, but this is lower than the 2.7% annual growth rate in June.

Northern Ireland continues to be the strongest performing nation or region in the UK, seeing house prices jump by 9.3% over the past year. The typical home now costs £214,832 in the region.

Scotland saw home prices lift by 4.7% last month, with average prices now at £215,238.

Property prices in Wales saw a rise of 2.7%, to an average of £227,928.

Among English regions, the North West and Yorkshire & the Humber have the highest rate of property price inflation, up 4.0% over the last year to £242,293 and £215,532, respectively.

The South West, London and the South East continue to see “moderate growth”, the survey says, with prices edging up by 0.2% and 0.5%, respectively.

London remains the most expensive part of the UK to buy a home, now averaging £539,914.

Halifax head of mortgages Amanda Bryden says: While the national average remains close to a record high, it’s worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type.

With mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving, she says.

But Bryden adds: We expect house prices to follow a steady path of modest gains through the rest of the year.

She says: The second half of this year will also see a notable rise in homeowners coming to the end of fixed-rate deals taken out during the pandemic-era property boom; a period marked by ultra-low interest rates and soaring house prices.