UK house prices leapt 2.2% in the three months to April and the annual rate of growth accelerated as well.
The latest Halifax house Price index showed prices rising 8.5% over the year to April, up from 8.1% in March.
That is still below last July's peak of 10.2%, however, and activity could slow over the rest of the year.
Halifax housing economist Martin Ellis said demand is being supported by a number of factors including economic improvement, rising employment and low mortgage rates.
"House prices are continuing to increase more quickly than average earnings despite the return to real earnings growth over the past few months. This should constrain house price growth and activity over the remainder of the year.
"The annual rate of house price growth is forecast to end the year at 3% to 5%."
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), said that while the rate of growth has slowed slightly, low mortgage pricing and the improving economy has continued to stimulate demand from would-be buyers.
"With construction having dipped in recent months, the limited supply of new homes is helping to underpin prices.
"House price growth is still outstripping wages, and the new government will face a big challenge to deliver greater housebuilding over the course of the next Parliament.
"Many modest earners will now be waiting expectantly to see how quickly measures emerge that will ease the affordability issues in the housing market."
Jeremy Duncombe, director, Legal & General Mortgage Club, said that although house price rises are slower than they were last year, they are still rising faster than inflation.
"The new Government has pledged to build more homes and it is vital that they deliver on this promise.
"We need around 250,000 new homes to be built each year to keep up with demand.
"At the moment we are well below this level so it needs to be at the top of the political agenda as we go into the next Parliament."
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