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.