House prices increased for the second month in a row, by 0.8% in August compared to July, according to data released by the Halifax.

Prices in the three months to August compared with the previous quarter were 1.7% higher, the biggest rise in this measure since July 2007. The average UK home is now valued at £160,973.

However, property values are 10% lower in the three months to August compared to the same period a year ago.

"Demand for housing has increased since the start of the year due to better affordability and low interest rates," said Martin Ellis, housing economist at the Halifax.