House prices rise at fastest annual rate since 2010 - Halifax

Residential property sales signs seen in London
Residential property sales signs are seen on a street in west London July 12, 2008. REUTERS/Toby Melville

LONDON (Reuters) - House prices rose 5.4 percent in the three months to August from a year earlier, the biggest annual rise since June 2010, mortgage lender Halifax said on Friday.

But there were some signs that the pace of increase was slowing with house prices up 0.4 percent in August alone. This was less than economists had forecast and slower than July's 0.9 percent rise, which was aided by an improving economy and government schemes to aid house purchases.

"Relatively modest economic growth and below inflation rises in earnings are likely to act as a brake on the market. Overall, house prices are expected to rise gradually over the remainder of the year," said Halifax housing economist Martin Ellis.

(Reporting by David Milliken; Editing by John Stonestreet)