According to the latest data from Nationwide, house prices have continued their post-lockdown recovery, reaching their highest monthly rise in August for more than 16 years.
Prices rose by 2 per cent in August compared to July or 3.7 per cent compared to a year ago, highlighting a rapid recovery for properties since lockdown restrictions were eased.
The increase represents the highest since February 2004 when property prices increased by 2.7 per cent.
The average house price now stands at £224,123.
Experts believe this to be down to several factors, including the release of pent-up demand after the lockdown, as well as people reassessing where they want to live after being forced to stay at home.
It is also thought that the stamp duty holiday announced by the Government in July will have played a key role in the market upturn.
The news is unwelcomed by First-time buyers, with many will struggling with securing a mortgage as lenders tighten their criteria for offering a loan. They are being forced to turn to large deposits in a bid to get on the ladder.
Nationwide's Chief Economist Robert Gardner said: "House prices have now reversed the losses recorded in May and June and are at a new all-time high.
"The bounce back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions."