This is according to the latest Halifax House Price Index, which also showed that prices in the three months to July compared to the previous three months - an indicator of the underlying trend - were 0.8% higher. This slight increase was the first rise on this quarterly basis since October 2007.
House prices in July were 12.1% lower on an annual basis. The annual rate of change (measured by the average for the latest three months against the same period a year earlier) improved for the third consecutive month and has eased from -17.7% in April.
Commenting, Martin Ellis, housing economist, said: "There was a 1.1% increase in the average UK house price in July. This was the second rise in the past three months and prices in the three months to July were 0.8% higher than in the previous three months. So far this year, house prices have fallen by less than 1%.
“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."
