This figure marks a 0.5% quarterly change while annually house prices are 2.6% lower.
Martin Ellis, housing economist at Halifax, said: “House prices in the three months to July were 0.5% higher than in the previous three months. This was the first increase in this key measure of underlying price movements for 14 months. Prices rose for the third consecutive month, increasing by 0.3% in July.
"Overall, there has been little change in either the level of house sales or the number of properties on the market for sale since late 2010. These steady market conditions have helped to stabilise house prices in 2011 following last year's modest decline.
"This pattern is expected to continue over the rest of the year with little genuine direction in either house prices or sales. Sustained low interest rates and a slowly improving economy should help to support demand in the face of pressures from weak earnings growth, relatively high inflation and higher taxes."
Nicholas Ayre, managing director at Home Fusion, said: “If ever there were a disconnect between house prices and the economy then surely this is it?”
“For house prices to have risen in July and over the three months leading up to it is incongruous given the state of the domestic and global economy.
“The Halifax is optimistic when it says low rates and a slowly improving economy will support demand.
“We are on the verge of global meltdown and so the ongoing growth of the UK economy is open to question.
“The overall stagnation in prices we have seen over the past year or so may soon come to an end as global forces cause the market to unravel.
“Even London, which has defied market conditions over the past year, could come under severe pressure given the nature of the crisis unfolding.
“To date the capital has thrived on the back of strong demand from international buyers and its relatively strong local economy but the way things are going, who knows?
“Until people are genuinely confident about the economy and their own financial security, the property market will remain very much on the back foot. Unfortunately, confidence and a sense of security are in extremely short supply.
“There has been much talk about the UK's property market ambling along with very little direction but this could rapidly come to an end as the global economy goes pop.
“One major issue with any house price analysis right now is that the data doesn't really reflect what's happening on the ground because there is very little activity and very few sales taking place.”
