Annual house price growth has eased back to 7.9 percent according to the Halifax house price index for July 2015.

The price of an average house stood at £198,883 in July, a decrease of 0.6 percent compared to June. On a three monthly (May to July) basis prices rose by 2.4 percent and were 7.9 percent higher than in the three months to July last year.

The Halifax also reported that house sales increased by five percent between May and June and that confidence in the housing market and house price growth "remains substantially higher than at the beginning of 2015".

The supply of houses remains very low says the lender, with “the stock of homes available for sale fell for the third successive month in June to another new record low”.

Looking at the house price graph below you can see that house prices as seen by Nationwide, Halifax and the Land Registry are now matching pre-credit crunch levels with no real sign of the upward trend levelling off anytime soon. Rightmove asking prices (yellow line) are still moving strongly upwards indicating that vendors and agents are very optimistic about the market.

House Price Graph to July 2015

Commenting, Stephen Noakes, Halifax Managing Director Retail Customer Products, said:

"House prices in the three months to July were 2.4% higher than in the previous quarter. This measure of the underlying rate of house price growth eased following last month’s sharp rise. Annual house price growth also declined, to 7.9% from 9.6% in June and is at its lowest since December 2014.

"The underlying pace of house price growth remains robust notwithstanding the easing in July. Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand. Supply is highly restricted with the stock of homes available for sale falling further to new record lows. This combination of well-supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near-term."

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