The number of sales during the quarter were also up and stood some 21% higher than in the same three months last year.
Stephen Noakes, mortgages director, said: "House prices in the three months to July were 3.6% higher than in the three months to April.
“Annually prices were 10.2% higher in the three months to July than in the same three months last year.
"While supply remains low, housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates. However, earnings growth is still lagging behind consumer price inflation."
Stephen Smith, director, Mortgage Club and Housing, Legal & General Network, added: “Despite a slight dip last month, the rapid pace of house price growth still hasn’t started to slow.
“Whilst price rises may excite some homeowners, we need to see the pace of this ease off to ensure a sustainable and healthy recovery.
“The challenge for the government is to ensure that any action taken to cool down the market in London does not kill off the recovery in other regions.”
Despite new buyer enquires continuing to ease the latest Halifax Housing Market Confidence Tracker indicates that sentiment towards selling is growing.
Over half (57%) of those surveyed believe the next 12 months will be a good time to sell, compared to only 32% who feel it will be a bad time. This is the highest score of this measure since the survey’s inception in April 2011.
