LONDON (Reuters) – British house prices jumped in August at the fastest pace this year, adding to signs the housing market has regained some strength after its post-Brexit vote slowdown, mortgage lender Halifax said on Thursday.

House prices increased 1.1 percent from July, the biggest one-month rise since December and building on July’s 0.7 percent increase, Halifax said.

“Recent figures for mortgage approvals suggest some buoyancy may be returning, possibly on the back of strong recent employment growth, with the unemployment rate falling to a 42-year low,” said Russell Galley, managing director of Halifax Community Bank.

However, falling wage growth, when adjusted for inflation, would limit the affordability of houses for some buyers, he said.

Annual house price growth picked up to 2.6 percent from 2.1 percent in July, Halifax said.

Last week the Bank of England said mortgage approvals were much stronger than expected in July.

A Reuters poll of analysts last week pointed to a muted outlook for the housing market, with prices expected to rise 2.0 percent this year and next.