UK house prices in biggest annual rise in three years in September -Halifax

LONDON (Reuters) - British house prices posted their largest annual gain in more than three years last month, mortgage lender Halifax said on Thursday.

Prices rose 6.2 percent in the three months to September, the biggest increase since June 2010. Compared with August, prices were 0.3 percent higher.

The average price of a home remains 14 percent below the August 2007 peak, Halifax said.

"Housing demand has risen more quickly than supply in recent months," said Halifax housing economist Martin Ellis.

"Demand has increased against a background of low interest rates and higher consumer confidence underpinned by signs that the economy has begun a sustainable recovery. Official schemes, such as Funding for Lending and Help to Buy, also appear to have boosted housing demand."

(Reporting by Olesya Dmitracova, Editing by Christine Murray)