House prices are on the rise in the Westcountry as the market continues to show signs of a revival.
Figures from Nationwide suggested the average price of a house in the UK increased by 3.5% in a year to £170,514 – the biggest increase in more than three years.
Prices were pushed up by greater consumer confidence, owing to more employment and signs of economic recovery across the country.
Property values rose 0.6% between July and August, which was marginally lower than the 0.9% monthly hike seen in July.
Richard Copus, spokesman for the National Association of Estate Agents in the South West, said: "We're noticing two things: the number of transactions are up and people are paying closer to the asking price. They are now saying there is no point playing games."
He described the increase in the region as "slight" but added that more affordable prices were bringing confidence to Devon and Cornwall.
Nationwide said UK house prices continued to rise at a "fairly brisk pace" in August, increasing by 0.6% compared with July.
Figures released by Land Registry on Thursday showed prices had risen by 1% year-on-year, taking the average price for a South West home to £173,371.
Prices in the region rose 0.6% between June and July, in contrast to the previous monthly drop of 0.2% from May.
The latest regional increase matched the national trend with the average house price in England and Wales up 1% to £164,098.
Mr Copus said there was "no evidence" from surveyors and estate agents of a big house price increases, as the market in the region remained stable but price-sensitive.
He warned that anyone expecting a house price boom was "in for a shock".
Roger Punch, RICS spokesman in the region, described prices as "patchy".
"The level of activity in the market is improving with sales rises and more people taking part, but prices overall in Devon and Cornwall are not really rising.
"There are a number of properties in some areas of the region that are overpriced... and we are also seeing people moving out of rented accommodation," he added.
Government schemes such as Funding for Lending and Help to Buy designed to help first-time buyers appear to have boosted the market.
Robert Gardner, Nationwide's chief economist, said: "While there have been encouraging signs that house building is starting to recover, construction is still running well below what is likely to be required to keep up with demand."
He added: "The risk is that if demand continues to run ahead of supply affordability may become stretched."
Bank of England governor Mark Carney warned last week over the risks of another housing bubble amid fears that Government stimulus measures are stoking unsustainable price rises.
He said the Bank is "acutely aware" of the potential threats and said action will be taken to clamp down on mortgage lending if needed.
Figures from the Council of Mortgage Lenders recently showed that first-time buyers accounted for 45% of house purchase loans in the second quarter – the highest since records began in 2005.
The Funding for Lending Scheme incentivises banks and building societies to lend more in return for discounted loans, and has been credited with improving mortgage availability and reducing rates. Chancellor George Osborne also launched Help to Buy in April, which allows people to buy a property with a 5% deposit.
Last week Communities Secretary Eric Pickles handed out a new set of rules forcing planners to ensure there were enough properties of the right type – including bungalows available only to older people.
Planning minister Nick Boles said: "We're all living longer and there will be a big rise in the number of older people in future years. Making sure councils plan for this, and for enough suitable homes like bungalows, will help ensure the ageing population can live in the places they want to enjoy their retirement."