House prices rose 1.6% last month, the Halifax has reported, bringing the average to £196,412.

Annual house inflation now stands at 8.5%, while in the three months to April, house prices rose by 2.2%.

Halifax economist Martin Ellis said that supply remained very tight.

The Halifax said it is anticipating house prices to grow between 3% and 5% this year.

However, its latest report was issued on the morning of election day and will have been compiled at a time when a hung Parliament was still expected.