House prices rose by 1.3pc in July, according to the Land Registry

House prices rose in July by 1.3pc, according to figures published by the Land Registry.

The average house price in England and Wales stood at just over £163,000 at the end of the month, but that still equates to an annual fall of 2.1pc.

The Land Registry said the only region to experience an increase in average prices over the past year is London, up 1.3pc.

Peter Bolton King, chief executive of the National Association of Estate Agents, said: “The NAEA’s latest figures show that buyers are coming back to the market – the average number of house-hunters registered per branch increased significantly in July, from 263 in June to 299. This is an unprecedented increase for what is traditionally a very quiet time.

“As mortgage conditions are more favourable now than at any time in the last three years, those in a position to buy are coming out of the woodwork and benefiting from prices that are, overall, still lower than a year ago.

“However, supply continues to be an issue and NAEA members are reporting a drop in the number of properties available.

“The truth is that, for most people – particularly first-time buyers – while buying a property is becoming more affordable, there just aren’t enough available properties on the market.”