House prices rose by 1.1% in July, the second rise in the last three months, according to figures from Halifax.

The average price of a house is now £159,623, 12.1% lower than the same time last year, but only 0.8% lower than at the beginning of 2009.

So far this year, house prices have fallen by less than 1%.

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Martin Ellis, Housing Economist, said: "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 the low levels of property available for sale to boost sales activity from exceptionally low levels and support prices over the past few months."

Figures reported last week from the Nationwide also showed a 1.3% rise in July.

(CD/KMcA)