House prices increased for the second time this year in July, according to figures released by Halifax.

House prices rose by 1.1% last month, meaning that an average house in the UK is now worth £159,623. This is 12% lower than a year ago but means that prices have dropped just 0.8% since the beginning of the year.

Halifax said that prices in the three months to July were 0.8% higher than in the previous three months - an indicator of the positive underlying trend.

"Demand for homes has risen, albeit from a very low base, since the start of the year, driven by improvements in affordability and low interest rates. Higher demand has combined with low levels of property available for sale to boost activity from exceptionally low levels and support prices," said Martin Ellis, housing economist for the Halifax.