House prices increased by 0.6% in July, reversing the 0.6% fall in June, according to Halifax.

House prices in July were 4.9% higher on an annual basis as measured by the average for the latest three months against the same period a year earlier. This was below the 6.3% increase in June and compares with a recent high of 6.9% in May.

Prices in July were marginally (0.8%) lower than at the end of 2009 but are 8.3% above their April 2009 nadir. The average house price is now £167,425 16% below its August 2007 peak.

Martin Ellis, housing economist, said: “Overall