Halifax: House prices rise 1.7%

UK house prices rose by 1.7% last month, according to the latest Halifax survey. Annual house price inflation now stands at 8.6%. However, analysts have warned that such levels of long-term growth are unlikely to continue.

Despite the average property in the UK being valued at £184,593, the building society's monthly house price index suggests a "weakening in activity".

According to Halifax, "sound economic fundamentals and a lower stock of properties" on the market are putting upward pressure on house prices, with the UK economy maintaining its above long-term average growth.

Martin Ellis, the firm's chief economist, said that rising utility bills and mortgage rates were likely to constrain housing demand within the coming months.

He pointed to "indications of a weakening in activity at earlier stages of the house-buying process, suggesting that house price inflation may soon begin to slow".

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