House prices rise 22%

THE UK's property market showed little signs of cooling in July, with house prices rising 1.3%.

The figure is slightly up on the 1.2% increase in June and represents a 22.1% rise on a year ago, according to Halifax, the country's largest mortgage lender.

The average price now stands at £161,831.

'Recent interest rate increases and constraints on first time buyer affordability are likely to temper house price growth over the remainder of 2004 and into 2005,' Halifax said. 'The fundamentals remain in place, however. A combination of a strong economy, a healthy labour market, below average interest rates, along with longer-term supply shortages, should continue to underpin the market.'

More to follow.