Image caption House prices are growing at their highest annual rate since June 2010

UK house prices have risen by 5.4% in the year to August, according to the Halifax's latest house price survey.

It is the highest annual rate since June 2010.

On the Halifax's measure, the average price of a house also went through the £170,000 mark for the first time in five years.

However, the figures are still well below the peak of the market in August 2007, when the average price was almost £200,000.

The Halifax said housing market activity was up thanks to an improving economy, low interest rates, and government-backed schemes such as Help to Buy.

Earlier this month the Nationwide said house prices in August were rising at an annual rate of 3.5%, slightly slower than inJuly.

The Nationwide compares prices in one month with the same month a year ago.

However, the Halifax compares a three-month period with the three-month period in the previous year.

Martin Ellis, the Halifax's housing economist, said: "Overall, house prices are expected to rise gradually over the remainder of the year."

The Halifax believes below-inflation pay rises "are likely to act as a brake on the market".

Property bubble

The Halifax estimates the average price of a house or flat in the UK is now £170,231. The last time house prices were higher than £170,000 was in September 2008.

The number of mortgage approvals for house purchases - an indicator of completed house sales - rose by 10% between the first and second quarters of 2013.

In July alone there were 60,600 approvals, the first time