House prices increased by 0.8% month-on-month in July, after three "relatively flat months", Halifax has found.

The bank’s July house price index revealed that the average house price in the UK stood at £291,268, which is an annual increase of 2.3%.

In terms of nations, Northern Ireland continued to be the best performer, with house prices rising by 5.8% on an annual basis and by 4.1% month-on-month, the highest increase since February 2023. The average house price in Northern Ireland now stands at £185,681.

Scotland (£205,264) and Wales (£221,102) also saw property prices increase by 3.4% and 2.1% respectively on an annual basis.

In terms of regions, house prices in the North West recorded strong growth, up 4.1%, compared to the previous year, with the average price now standing at £232,489.

London saw a modest annual increase of 1.2% in July and remained the region with the most expensive average property price in the UK at £536,052.

Head of mortgages at Halifax, Amanda Bryden, said: "Last week’s Bank of England’s base rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder. However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.

"Against the backdrop of lower mortgage rates and potential further base rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year."

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