House prices rise again.......................

House prices hit a fresh record in June, according to Halifax, despite expectations the rising cost of living in the UK would dampen demand.

The mortgage lender said the average house price reached £294,845 in June after rising by 1.8% - the steepest monthly increase since 2007.

Halifax said a lack of available homes for sale was lifting prices as well as a shift towards people buying larger, detached homes.

But it expects price growth will slow.

Halifax said that the housing market had, so far, been largely insulated from the rising cost of living.

"This is partly because, right now, the rise in the cost of living is being felt most by people on lower incomes, who are typically less active in buying and selling houses.

"In contrast, higher earners are likely to be able to use extra funds saved during the pandemic," said Halifax managing director Russell Galley.

House prices rose by 13% in the year to June, which Halifax said was the highest rate since late 2004.