Early summer saw modest recovery in house prices to UK-wide average of £163,049

House prices jumped 1.2% last month to increase average house prices in the UK to £163,049 according to the Halifax.

June’s rise followed a 0.1% rise in May, but house prices for June 2011 were 3.5% lower than the same month last year.

Housing economist Martin Ellis said: “Low earnings growth, higher taxes and relatively high inflation are all putting pressure on household finances.”

“Confidence is also weak as a result of uncertainty about the economic and employment outlook. These factors are probably constraining housing demand and applying some downward pressure on prices.”

The Halifax expected a modest improvement in the economy over the rest of the year. He said continued low interest rates would help support house prices.

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