According to Halifax, house prices reached a new record in June despite rising living costs in the UK.
According to the mortgage lender, the average house price rose by 1.8% in June, the highest monthly increase since 2007.
Halifax stated that a shortage of homes for sale was driving up prices and a shift towards larger detached homes.
It expects that price growth will slow.
Halifax stated that Halifax had said that the rising cost-of-living has insulated the housing market.
"This is partly due to the fact that people with lower incomes are less likely to buy or sell houses.
Russell Galley, Halifax managing director, stated that "in contrast, higher-earning people are likely to have the ability to use additional funds saved during pandemic."
Halifax reported that house prices increased by 13% between June 2004 and June 2005. This was the highest rate since late 2004, when it was a record.
According to the report, prices for detached homes that are larger than flats have increased by 13.9% compared with flats' 7.6% rise.
Halifax believes that there will be an increase in household budget pressures due to inflation and higher interest rates. This is because of the effect this has on affordability.
Galley stated that while the slowing of house prices growth may be later than expected, it should still be expected in months to come.
In an effort to curb inflation, the Bank of England announced several interest rate increases in recent months. This includes raising mortgage rates for some borrowers.
Northern Ireland experienced the greatest increase in house prices. It saw a 15.2% increase in the year to June, bringing the average price to PS187.833. Wales saw a sharp increase of 14.3%, to PS219.281.
Halifax also reported that the average house price in Scotland rose 9.9% in the past year to PS201 549. This is "breaking through PS200,000" for the first-time in history.
