House prices increased by 1.2 per cent in June but still remain 3.5 per cent lower than a year ago, according to the latest house price index from Halifax.
Over the three months to June, prices fell by 0.5 per cent, making the average price £163,049.
Halifax housing economist Martin Ellis says: “ A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months.
“The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand. Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances.”