The UK residential property market continues to show signs of stability by registering an annual house price growth of 3.7 per cent in August.

The average price of a home in the UK was £229,958 and the sector registered +1.9 per cent quarterly change, according to the latest Halifax House Price Index.

While the pace of employment growth has recently slowed, a low unemployment rate and a gradual pickup in wage growth is helping to support household finances. This has been accompanied by interest rates still remaining at a historically low rate and a stable, yet constrained, supply of new homes onto the market further supporting house price, Halifax said in its review.

The Bank of England statistics also reveal that mortgage approvals are steady. Data from RICS showed that the housing market was broadly stable last month.

Moreover, the number of first-time buyers increased by around 3 per cent in the first six months of 2018 to 175,500 compared with 171,200 in the same period in 2017. This is the sixth increase over a comparable period in the last seven years and the third consecutive year that first-time buyer numbers have topped 150,000.

Stakeholders of the residential property market expect house price growth to remain in the positive territory in the coming months.