The average UK house price was more than £2,200 higher in July than it was in June, following three relatively flat months, the latest figures from Halifax show today.
Halifax said house prices increased by 0.8% month on month and by 2.3% annually.
Across the UK, the average house price in July was £291,268, up from £289,042 in June.
Prices in Northern Ireland rose by 5.8% to an average of £195,681.
The Bank of England base rate was cut from 5.25% to 5% last week, in a move which property professionals said could bring a boost to the autumn housing market.
"In July, UK house prices increased by 0.8% on a monthly basis, following three relatively flat months," Amanda Bryden, head of mortgages at Halifax, said.
"The average house price in the UK is £291,268, up over £2,200 compared to the previous month. Annual growth rose to 2.3%, the highest rate since the start of this year," she noted.
"Last week's Bank of England base rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder," she said.
"However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners. Against the backdrop of lower mortgage rates and potential further base rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year," she added.
Holly Tomlinson, a financial planner at wealth manager Quilter, said "a feeling that rates are going in the right direction" will help people decide to take the leap back into the market.
"Those on the fence about selling their home may also feel the time is now right. The autumn may therefore prove to be busier than anticipated," she added.
Nathan Emerson, chief executive of property professionals' body Propertymark, said: "It is extremely positive to see further growth within the housing sector, especially following what has been a tough time across the last few years for consumers.
"With inflation now down at targeted levels and with a very welcome cut in interest rates last week, Propertymark is extremely optimistic to see a real uplift across the housing sector over the coming months," he said.
"Assuming the economy remains stable in September, it would be good to see the central bank continue to gradually cut interest rates as conditions permit," he added.
