Small house price rise in July

House prices rose by 0.7% in July, the fourth consecutive month to show a rise of less than 1%.

The figures, released by the Halifax, suggest the housing market in beginning to cool, after five recent rises in interest rates.

Halifax chief economist Martin Ellis said: "We expect the downward trend in house price growth to continue as the five interest rate rises since last summer have an increasing impact on household spending and housing demand.

"Sound economic fundamentals, high levels of employment and a shortage in the number of properties available for sale – particularly in London and the South East – will, however, continue to support house prices."

The survey by the Halifax put the average UK house price at £198,915. Annual house price growth stands at 11.2%.

The apparent cooling in the housing market is thought to be one of the reasons why the Bank of England’s Monetary Policy Committee voted to keep interest rates at 5.75% this week.

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