The rate of house price growth across the UK remained below one per cent in July, according to new figures from Halifax.

Publishing its monthly house price index, the firm states that growth is slowing, with the quarterly increase between April and July standing at 1.3 per cent - the smallest growth since August 2006.

Meanwhile, prices increased by 0.7 per cent on average last month.

Commenting on the figures, chief economist at the bank Martin Ellis stated: "We expect the downward trend in house price growth to continue as the five interest rate rises since last summer have an increasing impact on household spending and housing demand."

However, he also observed that good fundamentals and a shortage of properties available for sale were likely to support the market in the coming months.

Yesterday, the Bank of England announced its decision to maintain interest rates at 5.75 per cent during August.