But prices were 2.4% higher year on year than last August’s figure of £259,153.

The lender also analysed how energy efficiency impacts property prices and found that homes with the best ratings attract a premium.

It says that properties with an energy performance certificate (EPC) rating of A or B, are worth on average 2.8% more than a similar property rated D.

And homes with the worst EPC ratings of F or G are valued 4.2% lower than a similar D rated property.

It found little difference between properties with a C or E rating and those with a D.

Nationwide chief economist Robert Gardner says the annual rate of house price growth in August is the fastest since December 2022, although prices are still around 3% below the all-time highs recorded in the summer of 2022.

He says: “While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging).

“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”

On the energy efficiency findings, he says: “The Government’s current aspiration is to upgrade as many homes as possible to band C by 2035. “However, the current pace of energy efficiency improvements is relatively slow, given the scale of the challenge. 

“This suggests a need for further incentives to help decarbonise homes.”

Base rate cut boosts buyer sentiment

MT Finance director Tomer Aboody says: “Any concerns or uncertainty there may have been pre-election dissipated in August as property market sentiment picked up, buoyed by the rate cut.

“High borrowing costs have been an issue for a while so with lenders trimming their mortgage rates and promise of more reductions from the Bank of England to come, this should lead to an increase in activity in the autumn.

“While there are concerns about what the Budget will have in store, the Chancellor has an opportunity to tackle stamp duty reforms to assist buyers and boost all-important transaction levels. 

“Let’s hope she takes it, benefiting not only the housing market but the wider economy.”

Quilter mortgage expert Karen Noye says: “These quieter months usually see a slowdown as people focus on holidays rather than house hunting.

“However, this summer has still marked a recovery after several months of relatively flat results, reflecting the challenging economic conditions but a strong housing market.”

Optimism for a strong autumn market

SPF Private Clients chief executive Mark Harris says: “With lenders reducing their mortgage rates, launching sub-4 per cent five-year fixes, the days of rock-bottom mortgages may be long gone but more palatable pricing is helping sentiment.

“Now that the Bank of England has reduced rates, it sends out a strong message that they have not only peaked but are on a downwards trajectory after months of uncertainty. 

“It enables people to make decisions with confidence and we anticipate a strong autumn market although the Budget looms ominously.”