Average house price nears £200,000

Average UK property value grew by 8.5% in the year to April, claims Halifax

House prices

House prices jumped by 1.6% month on month in April as the supply of homes for buyers to choose from remains tight, Halifax has reported.

The average UK property value grew by 8.5% in the year to April, accelerating from an annual growth rate of 8.1% in March.

The month-on-month increase in house prices is the strongest seen since January, and takes the typical property value to £196,412.

The annual rate of price growth has remained at between around 8%-9% since the start of the year, and it is still well below a peak of 10.2% year-on-year growth recorded last July when the housing market was particularly heated.

Compare mortgage rates

Martin Ellis, a housing economist at Halifax, said: "Housing demand is being supported by a number of factors including economic improvement, rising employment and low mortgage rates. At the same time, supply remains very tight with a general shortage of properties available for sale.

"This combination has kept house price inflation steady in recent months."

10 property hotspots

10 property hotspots

Read more on AOL Money

Government may build new homes itself

The UK's holiday home hotspots revealed

Compare mortgage rates

What They're Not Telling You About Housing