UK house prices last month saw the largest increase so far this year, according to the latest data from Halifax, aided by gentle improvements in mortgage affordability.
The average property price climbed 0.4% in July to £298,237, up from £297,157 in June.
The annual rate of growth eased slightly to 2.4% from 2.7% the month before.
Amanda Bryden, Halifax's head of mortgages, said that mortgage rates are continuing to ease and wage growth slowing but still positive, "the picture on affordability is gradually improving.
With the government and regulators making affordability assessments more flexible, she said, "the result is a housing market that continues to show resilience, with activity levels holding up well".
"We expect house prices to follow a steady path of modest gains through the rest of the year.”
This is despite the second half of 2025 being expected to see many homeowners reach the end of pandemic-era fixed-rate deals.
"While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise... those coming off a two year fixed-rate are very likely to see their monthly payments come down," said Bryden.