Recent changes in the housing market indicate that after a period of high growth, the situation is once again stable, according to Halifax.
The bank's House Price Index shows annual property price inflation at 8.8 per cent, with a seasonally adjusted average value of just over £177,000.
July saw a monthly price increase of 0.2 per cent, following drops of 0.1 per cent and 1.2 per cent in May and June this year, respectively.
Martin Ellis, Halifax's chief economist, said: "This mixed pattern of monthly price rises and falls is a typical feature of a more stable housing market.
"Overall, house prices have increased by only 0.9 per cent in the past four months compared with a 3.3 per cent rise in the preceding four months," he added.
Mr Ellis further argued that the property market was enjoying "sound fundamentals", which bodes well for the future.
The seemingly more positive news comes as the Bank of England decided yesterday to push interest rates up 0.25 percentage points.
Business leaders – who had opposed the increase, fearing it would make consumers less likely to buy on the high street and take a mortgage – have called for this to be the only increase this year.To read more about property, click here.
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