Higher demand 'has boosted sales activity'

Property sales activity has been boosted from very low levels by higher demand over the past few months, according to an expert.

Housing economist Martin Ellis was commenting on the Halifax House Price Index figures for July, which revealed a 1.1 per cent increase in the average UK house price.

Mr Ellis said that improvements in affordability and low interest rates caused a rise in demand for homes - albeit from a very low base - since the beginning of 2009.

"Higher demand has combined with the low levels of property available for sale to boost sales activity from exceptionally low levels and support prices over the past few months," he said.

Last month's increase was the second rise in the past three months, with prices in the three months to July being 0.8 per cent higher than in the previous three months.

Further optimism regarding the index came from the marketing director at fish4homes this week, who said that prices were starting to move in the right direction.