Annual house price growth rebounds to 3.3% in July: Halifax

On a monthly basis, prices rose by 1.4% in July, pushing the average UK house price to a new record of £230,280.

House prices in the three months to July were 1.3% higher than in the previous quarter, the fastest quarterly increase, again, since November.

Russell Galley, managing director at Halifax, said: “While the quarterly and annual rates of house price growth have improved, housing activity remains soft. Despite the recent modest improvement in mortgage approvals, the latest survey data for new buyer enquiries and agreed sales suggest that approvals will remain broadly flat until the end of the year.

“In contrast, the labour market remains robust, with the numbers of people in employment rising by 137,000 in the three months to May with much of the job creation driven by a rise in full-time employment. Pressures on household finances are also easing as growth in average earnings continues to rise at a faster rate than consumer prices. With regards to the recent rise in the Bank of England Base Rate, we do not anticipate that this will have a significant effect on either mortgage affordability or transaction volumes.”

Jeremy Leaf, former RICS residential chairman, commented: "House prices experienced a rebound in July but this was mainly due to shortage of stock and continuing low mortgage rates, as we have found on the high street that many buyers have already factored in the increase in interest rates. It is almost as if the north/south divide is working in reverse with more activity outside rather than inside the capital.

"There is still no clear pattern to the market after June saw the slowest growth for five years. Viewings are up but it is hard to obtain commitment as political and economic uncertainty remain.

"We are looking forward to a reasonably active summer and autumn period as fewer but more serious buyers come to terms with changed market conditions."