Property values increased despite seeing a fourth successive quarterly fall.
The average value of a property in the UK rose by 0.4% last month – the largest monthly increase to date in 2017.
With the average home now worth according to the house price index published by mortgage lender Halifax, the increase partially offsets the 0.9% decline in house prices seen in June, where the average price fell to
However, while property prices rose on a monthly basis, July also marked the fourth successive month of quarterly decline in house price values for the first time since November 2012.
Property values in the past three months (May to July) fell by 0.2% on the values seen between February and April, maintaining the pace of quarterly decline seen in the market since April this year, where prices fell by 0.2% over the quarter.
Annually, house price growth continues to slow, with the year-on-year increase in July standing at just 2.1% – down from the 8.4% seen in the same month last year and falling half a percentage point from the 2.6% seen in June 2017.
Commenting on the market’s movement in July, Russell Galley, Managing Director of Halifax Community Bank, said:
‘House prices continue to remain broadly flat, as they have since the start of the year. Prices in the three months to July were marginally lower than in the preceding three months, while the annual rate of growth has edged down from 5.7% in January to 2.1% in July; the lowest rate since April 2013.
‘However, a continued low mortgage rate environment, combined with an ongoing shortage of properties for sale, should continue to support house prices over the coming months.’
Elsewhere in the market, housing supply continued to struggle, said Halifax, as new home instructions fell for the 16th consecutive month and average stock levels experienced another slight decline to push them to a new record low.