UK house prices are once again on the move and June proved to be an active month within the housing market. House prices increased during the sixth month of the year which is the fourth consecutive month for a surge in property value, according to the Halifax. House prices rose almost 2%, bringing the average price of a UK home to £200,280.

As the average price of a home increased, so did inflation. May posted an inflation rate of 8.6%, whilst June saw a significant increase to 9.6%. The number of houses being placed on the market is still being outpaced by demand for houses. This could be an issue for months and possibly years to come. Currently, the number of homes on the market for sale is at a record low.

Martin Ellis of Halifax commented on the factors which are now leading to a surge in demand for housing, saying: "Economic growth, higher employment, increasing real earnings growth and very low mortgage rates are all supporting housing demand.”

The weeks of a slowdown in housing following the general election have now been corrected as original mortgage loan activity as well as remortgage activity are now on the rise. Demand is expected to continue to increase through the summer selling season. An increase of 3 to 5% in housing prices is also expected to occur, according to many housing experts.

With factors such as increases in earnings and low mortgage rates, consumer confidence in the UK housing market is now quite high and should remain at a high level through the warm months of summer.