British house prices spiked in July, despite other signs of softness in the market, mortgage lender Halifax said on Tuesday.
"In contrast, the labour market remains robust, with the numbers of people in employment rising by 137,000 in the three months to May with much of the job creation driven by a rise in full-time employment".
House prices grew 1.4 percent month-on-month in July, faster than the 0.9 percent rise in June.
The Halifax's latest survey echoed that of rival Nationwide, which also reported a pick-up in the annual rate of price growth in July.More news: Perseid meteor shower peaks this weekend - here’s how to watch
He said: "We remain dubious that the housing market is seeing a sustainable shifting up of a gear".
Prices in July rose a stronger-than-expected 1.4% from the month before.
Foundation Home Loans marketing director Jeff Knight says: "With the Bank of England's decision to raise interest rates for only the second time in a decade, households feeling the pinch may be concerned that this could be the beginning of a new era".
Brian Murphy, Head of Lending for Mortgage Advice Bureau, said: 'Despite the rise in Bank Rate announced last week by the Bank of England, many lenders haven't changed their rates as they had priced in for the increase previously, which is good news for buyers and those remortgaging alike. It is nearly as if the north/south divide is working in reverse with more activity outside rather than inside the capital.More news: ‘Superman’ Actress Margot Kidder’s Cause of Death Released
Russell Quirk, founder and chief executive of Emoov, says the current price path for the market as a whole favours both existing owners and aspiring buyers.
Although the general trend is slowing house prices in London, the surge here shows that the housing market is still not yet on course for any form of landing (soft or hard) just yet.
"Housing market activity is still relatively lacklustre and we expect it to remain so as the extended squeeze on consumer purchasing power only gradually eases, consumer confidence is relatively fragile and appreciable caution persists over engaging in major transactions".
"Following the recent moderate rate hike to 0.75 by the BOE, mortgage rates still remain low and this small increase is unlikely to put anyone off buying a property as rental prices continue to increase".More news: Xiaomi Mi A2 Price in India Leaked ahead of Today’s Launch