House prices in the UK have risen by 0.6 per cent in July making up for the fall in June, according to a report from the Halifax.
This puts prices at 8.3 per cent higher than the lowest level recorded in April 2009 but still 16 per cent lower than the peak in August 2007.
Martin Ellis, housing economist at the firm, said: “House prices increased by 0.6% in July, reversing the fall in June. Overall, there has been little change in prices during 2010 so far. The mixed pattern of monthly rises and falls over the first seven months of the year is consistent with a slowing market. It is also in line with our view that house prices will be broadly unchanged over 2010 as a whole”.
He explained that the rise in the number of properties and the abolition of home information packs had lessened the pressure that was driving up prices in 2009. However, the recovery of the economy and low interest rates are “underpinning demand” and continuing to support the housing market he added.
The report stated that the average house price is now £167,425, down from January’s figure of £169,000 but analysts have said such figures vary depending upon the time surveys are completed and who they are provided by.
Chief UK and European economist at IHS Global Insight Howard Archer said: “House prices are notoriously volatile on a month-to-month basis, and can also be from survey to survey. So it is best not to attach too much importance to one piece of data. As such, the 0.6% rise reported by the Halifax in July does not fundamentally alter our view that house prices will ease back over the latter months of 2010 and very likely soften modestly further in 2011”.
Halifax has reported three house price falls in the last four months but experts are not predicting a crash in the property sector.