Annual house price growth hit a four-year high in August, Halifax claims.

The latest Halifax House Price Index shows prices rose 5.2% on average to £245,747.

It is the first time the lender has recorded values going above £245,000.

Prices were also up 1.6% on a monthly basis.

Russell Galley, managing director at Halifax, said: “A surge in market activity has driven up house prices through the post-lockdown summer period, fuelled by the release of pent-up demand, a strong desire amongst some buyers to move to bigger properties, and of course the temporary cut to Stamp Duty.

“Notwithstanding the various positive factors supporting the market in the short-term, it remains highly unlikely that this level of price inflation will be sustained.

“The macroeconomic picture in the UK should become clearer over the next few months as various Government support measures come to an end, and the true scale of the impact of the pandemic on the labour market becomes apparent.

“Rising house prices contrast with the adverse impact of the pandemic on household earnings and with most economic commentators believing that unemployment will continue to rise, we do expect greater downward pressure on house prices in the medium-term.”

Commenting on the data, Lucy Pendleton, director at estate agent James Pendleton, said: “Another week, another record high.

“Storming house price growth like this will feel more like a lottery win for some home owners, particularly those approaching retirement or looking to downsize in the near future. Only four months ago they would have had good reason to have lost heart.

“This confirms the red hot finish to the summer suggested by the Nationwide last week and the typically more bullish Halifax index hasn’t disappointed.

Ross Counsell of property buyers, Good Move, said:

“Today’s statistics do showcase a better indicator of market health which should reassure both sellers and buyers in the UK. However, continued growth is reliant on how the wider economy performs over the coming months and how fast an economic recovery we’re likely to see over the long-term.”

Anthony Codling of Twindig voiced a note of caution:

“I continue to be surprised at not just by the robustness of house prices but by the simple fact they are increasing at this rate in the face of such economic uncertainty. My concern is that this is further evidence of a two-speed housing market where life carries on as normal for the property ‘haves’ but becomes increasingly difficult for the property ‘have-nots’. If the UK housing market is not open to all I fear that the recovery is being built on sand rather than rock.”

Gráinne Gilmore, Head of Research at Zoopla, said:

 “A strong rebound in demand among home movers since lockdown is one factor underpinning pricing in the housing market. However, this is coupled with a once-in-a-lifetime reassessment of housing needs among some buyers, who have used lockdown to review how, and where, they live.”