House prices up more than 10 per cent, says Halifax

New figures contradict other reports of slowdown in housing market

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The Independent Online

House prices between May and July this year were 10.2 per cent higher than in the same three months last year, says the new report.

This is the first time since 2007 that the annual change has gone above 10 per cent.

After a drop in June, the Halifax figures suggest monthly house prices grew by 1.4 per cent in July, although other house price indices have suggested a slowdown over the last month.

The new figures estimate that the average price of a home is now £186,322, with prices between May and July 3.6 per cent higher than in the previous three,

Stephen Noakes, Mortgages Directorn at Halifax said that although supply was still low, housing demand was being supported by a continuing economic recovery, improving consumer confidence and low mortgage rates..

"Slowdown, what slowdown?" said Andy Hatoum, co-founder of the property search engine "June's brief dip feels like an age ago . But if ever there was an illustration of the volatility of the month-on-month figures, this is it. We should ignore the waves and focus on the tide, which is still rising inexorably.

James Hall, director of London estate agent Fishneedwater added: "The property market may have paused momentarily last month but today's figures prove there has been an injection of summer adrenaline. A chronic shortage of housing, rising employment and sentiment in the economy is exacerbating competition across the country.

"Still above the national average, we need to be vigilant of London's rocketing house prices, which are far outstripping wage growth. The possibility of rising interest rates by the start of next year could hit borrowers hard, and introduces the risk of those buying now of over-reaching themselves.  The risk of a damaging house price correction in the capital, however, is escalating."