House prices jumped in September, the Nationwide Building Society said on Thursday, evidence that August's interest rate rise had done little to cool the property market.
The Nationwide said the cost of an average home rose 1.3 percent, bringing the annual rate of house price inflation to 8.2 percent its fastest rate since February 2005.
Analysts said the figures suggested house prices still had further to rise and reinforced expectations the Bank of England might need to raise interest rates again this year from 4.75 percent.
But the report had little market impact because attention was focussed instead on news of an error in national income figures by the Office for National Statistics that was seen as diminishing the risks of a rate rise.
With consumer demand looking set to enjoy continued support from the housing market ... today's report keeps the door open for an additional precautionary rate hike in November, said Richard McGuire, strategist at RBC Capital Markets.
An average home cost 169,413 pounds in September, almost 13,000 pounds more than at the same time last year. Over the year, the typical home has risen in value by more than 35 pounds a day.
Just like the weather, the housing market was unseasonably warm in September, said Fionnuala Early, Nationwide's Group Economist.
Nationwide noted a weak patch this time last year had boosted the annual comparison but pointed out the three month on three month series also showed a clear pick up in house price inflation since July.
Buy to let landlord demand was particularly strong and looked set to support the market for some time to come, it said, especially amid strong demand for rented accommodation from migrant workers.
Around two thirds of existing landlords have plans to extend their portfolios and many have access to finance from gearing their existing portfolios, the Nationwide said.