The latest Halifax house price index shows that house prices rose by 7.3 percent between January 2013 and January 2014.
On a quarter by quarter basis (November 2013 to January 2013 compared to August 2013 to October 2013) house prices rose by 1.9 percent and by 1.1 percent in the last month alone.
The 7.3 percent annual rise was based on comparing the three months to January 2014 with the the same three months a year ago.
Halifax puts the rise down to an increasing demand coupled with a lack of properties coming onto the market.
As can be seen from the house price graphs at the foot of the article the recent house price surge continues, but the rise in the average price of mortgage based instructions is still outstripping that of the Land Registry prices, which also include cash sales data. This could be indicative of a mortgage led house price bubble, especially when you compare the picture to 2007 earlier on in the graph.
Commenting, Martin Ellis, housing economist for the Halifax, said:
"House prices in the three months to January were 1.9% higher than in the previous three months. The annual growth in prices fell slightly compared with last month with prices in the three months to January 7.3% higher than in the same period last year.
"With the supply of properties being slow to respond to more buoyant market conditions, stronger demand has resulted in continued upward pressure on house prices. Demand has increased against a background of low interest rates and higher consumer confidence underpinned by signs that the economy is recovering and unemployment falling faster than expected. Official schemes, such as Help to Buy, also appear to have boosted housing demand. However, continuing pressures on household finances, as earnings fail to keep pace with consumer price inflation, are expected to remain a constraint on the rate of growth of house prices."