The findings, published by Halifax, added that house price inflation also continues to increase.
In May, the mortgage lender said prices increased by 8.7% from a year earlier, and is also a slight rise on last month's rate of 8.5%.
The monthly rise was reported to be 3.9%, which is large, but in the report Halifax said the monthly figures can be "volatile". It added that quarter-on-quarter figures were more reliable, and had increased by 2%.
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Elsewhere, the average property price in the UK now stands at £184,464, which is the highest figure since October 2007.
In a statement, Stephen Noakes, Mortgages Director, said: "On an annual basis housing demand is still strong and continues to be supported by a strengthening economic recovery.
"Consumer confidence is being boosted by a rapidly improving labour market and low interest rates, although growth in average earnings still remains weak.
"However, there are signs of a revival in housebuilding which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term."
(JP/IT)
