Hopes of recovery sparked as Halifax reports confirms first quarterly price rise since October 2007

UK house prices rose 1.1% in July and were down by the lowest annual rate in over a year, according to mortgage lender, Halifax. The statistic is the latest piece of good news about house prices which will further spark hopes of a recovery.

Prices in the three months to July were 0.8% higher than the previous three months, said the Halifax. This was the first quarterly rise since October 2007.

Previously they were down 0.4% month-on-month in June after they had risen 2.6% month-on-month in May.

Martin Ellis, Halifax housing economist, said: “Demand for homes has risen, albeit from a very low base, since the start of the year, driven by improvements in affordability and low interest rates. Higher demand has combined with the low levels of property available for sale to boost sales activity from exceptionally low levels and support prices over the past few months.”

The average house is now worth £159,623, in July compared to £160,861 in December 2008.