House prices rise but growth is slowing - Halifax

House prices continue to rise although there appears to be a check in pace, according to the latest Halifax house price index.

Latest findings by the lender suggest values should remain stable despite a slolw down in growth.

House prices increased by 1.3% in July, having risen 1.2% in June, and these figures suggest a slowing of growth against an average 2% increase for the previous six months, the lender says.

However, Halifax predicts house prices to remain relatively stable despite interest rises and affordability, which will temper continued growth.

The fundamentals for the market, of strong economy, strong labour market, still below average interest rates and a longer term supply shortages, will keep the market steady.

House prices have doubled since 1999, when the average property price was £78,055. It is now £161,831, Halifax suggests.

This could explain the fall in mortgages taken out by first time buyers, which was just 28% of home loans in the second quarter 2004 compared with 48% in the same quarter of 1999, according to data from the Council of Mortgate Lenders.