House prices defy slump predictions

House prices have risen sharply for the 12th month in a row, defying expectations of a slowdown. Strong demand and a shortage of homes for sale pushed average prices up by 1.8% over the month, the biggest rise since early 2007. Annual growth of 13% was the highest since late 2004. The average price of a property is now £294,845, according to figures from Halifax. Prices have risen by 6.8%, or an average of £18,849, so far this year. Russell Galley, Halifax managing director, said: “The UK housing market defied any expectations of a slowdown. The supply-demand imbalance continues to be the reason house prices are rising so sharply.” In Scotland, the average house price has passed the £200,000 mark for the first time. However, figures for June from Nationwide indicated the market was slowing. It reported a 0.3% rise in average prices last month, the smallest monthly increase since last September. The Times (£) The Guardian