House prices creep up in July

But Nicholas Ayre of property agent HomeFusion said the Halifax was being “optimistic” when it said low rates and a slowly improving economy will support demand.

He said global economic instability could hit prices in London the hardest: “The overall stagnation in prices we have seen over the past year or so may soon come to an end as global forces cause the market to unravel. Even London, which has defied market conditions over the past year, could come under severe pressure given the nature of the crisis unfolding.

“To date, the capital has thrived on the back of strong demand from international buyers and its relatively strong local economy, but the way things are going, who knows? Until people are genuinely confident about the economy and their own financial security the property market will remain very much on the back foot.”

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