According to a new survey, the housing prices have risen by 5.4 per cent during the year till August in the UK as the economy shows signs of a strong recovery.

The Halifax's latest house price survey showed the rise is the highest annual rate since June 2010. The average price of a house also rose beyond the £170,000 mark for the first time in five years as the housing market continued to recover backed by government schemes and growing economy. The figure is still below its highest level in August 2007 when the average price was around £200,000.

The Halifax noted that the housing market activity has improved mainly due to an improving economy, low interest rates, and government-backed schemes such as Help to Buy. The government in the UK has been taking steps to support the housing market by providing backing to the buyers. Under the scheme, people in the UK will be able to buy a home with a 5 per cent deposit and the UK Government will act as guarantor for a mortgage for an extra 20 per cent of the value of the property.

Government measures and lack of supply has increased the prices and the sector is beginning to show signs of recovery.