By Marcus Leach
According to data released by Halifax the UK housing market is facing 'significant headwinds' over the coming months.
Based on Halifax's own lending figures the data shows that house prices rose in June, but demand will become increasingly constrained.
Low pay rises, higher taxes and inflation are all contributing factors, with the current low interest rate ensuring a degree of stability in the property market.
The average home rose in price by 1.2% in June compared with May, although compared with a year earlier the average house price was down 3.5%.
"Low interest rates, an increase in the number of people in employment and some tightening in market conditions earlier in the year are likely to have been the main factors behind the recent improvement in price trends," said Halifax's housing economist Martin Ellis.
"A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months.
"The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand."
Join us on