The lender says the average house price increased from £157,713 in June to £159,623 in July, the second rise in three months.
Prices in the three months to July were 0.8 per cent higher than in the previous three months and have fallen by less than 1 per cent this year.
Prices in July are 12.1 per cent lower, year on year.
Halifax housing economist Martin Ellis says: “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.”