Halifax dampener on house price rises

House prices jumped in June, but lender Halifax was quick to dampen any hopes of green shoots in the property market today.

The surprise 1.2% rise last month takes the cost of the average house to £163,049.

But prices are still down 0.5% in the past three months after a bigger 1.4% slide in April and "broadly unchanged" since the start of this year, the lender says.

Halifax puts the recent price revival down to slightly better news from the jobs market, low interest rates and a shortage of homes on the market.

But chief economist Martin Ellis is sticking by the lender's forecast for a 2% fall in house prices this year as austerity measures bite and wages are squeezed by the high cost of living. He warned: "The market is likely to continue to face significant headwinds which are expected to constrain housing demand.

"Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances," added the economist.