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  The average house price rose in June, up 1.2pc in a month.?Photo: GETTY

The average price of a house rose ￡2,010 to ￡163,049, representing the fastest monthly rise since October, according to the mortgage lender’s price index.

The quarterly rate of change, seen as a better indicator of the underlying trends, showed that prices were 0.5pc lower over the three months to June than in the previous quarter. The quarter-on-quarter fall was 1.1pc in May.

Prices were still some 3.5pc under their level at the same time last year, although this was a small improvement on the 4.2pc annual drop recorded in May. Prices were “broadly unchanged” from December.

Halifax said an increase in the number of people in work, coupled with continued low interest rates, had supported the market in recent months. The number of people in employment increased by 80,000 in the three months to April against the previous quarter, according to official numbers.

As for the impact of the Bank of England’s keeping its base rate at a record 0.5pc low, the lender said typical mortgage payments for a new borrower have fallen from a 2007 peak of 48pc of average disposable earnings to just 28pc currently – which it said illustrated how low interest rates have helped improve mortgage affordability.

The recent pick-up in house prices also tallied with a slight improvement in the ratio of house sales to the stock of unsold properties, the lender added, which has traditionally been a good indicator of price trends.

“A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months,” said Martin Ellis, the lender’s housing economist. However, he cautioned: “The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand. Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances.”

Other economists were also wary of viewing the monthly rise as a trend that was likely to be sustained. “Despite the spike up in house prices in June reported by the Halifax, we retain the view that modest overall falls in house prices are more likely than not over the second half of 2011 and the first half of 2012,” said Howard Archer, at IHS Global Insight.

The rival index from lender Nationwide last week showed house prices were flat in June, offering a less optimistic picture of the market. Analysts had expected the Halifax data to likewise offer an unchanged reading.

May also saw a worrying 8pc increase in the average number of properties for sale at estate agents as sales rates fell to the lowest levels since January, RICS said.

UK house prices have been protected from further falls by a lack of supply of properties for sale, with repossessions less prevalent than in the recession of the early 1990s.

However, the survey suggests supply may be growing. Surveyors completed an average of just 14.7 sales each last month and only 5pc more reported a rise in the number of sales compared to a fall. Meanwhile, new vendor instructions increased by a balance of 15pc.

This means house prices remain under pressure, with 28pc more surveyors reporting price falls rather than rises in May. Looking forward, 27pc more respondents in the survey expect prices to fall rather than rise over the next three months.

Many surveyors blamed the number of bank holidays in April, including the Royal Wedding weekend, for the flattening of demand in May with new buyer enquiries down for the month.

However, London – where ￡3.7bn of foreign money is pouring into prime property every year – continued to outperform in May. It was the only region to report a rise in house prices in the month. In contrast, the West Midlands had the highest balance of surveyors who reported further price drops at 64pc, followed by Wales and Northern Ireland, both at 43pc.

Ian Perry, a spokesperson for RICS, said: “Buyer interest in purchasing property remains flat across much of the country and there is little sign of this changing any time soon. Uncertainty over the economic outlook remains as important as the availability of mortgage finance in depressing demand.

“On the other hand, the appetite to rent is continuing to grow. And, with little new supply coming onto the lettings market, the cost of renting is increasing and will continue to do so.”

The RICS survey is in line with figures released by Halifax and Nationwide for May, which also pointed to a subdued market.

Halifax said house prices remained broadly unchanged during the month, rising by just 0.1pc, while Nationwide said they crept ahead by 0.3pc.

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May also saw a worrying 8pc increase in the average number of properties for sale at estate agents as sales rates fell to the lowest levels since January, RICS said.

UK house prices have been protected from further falls by a lack of supply of properties for sale, with repossessions less prevalent than in the recession of the early 1990s.

However, the survey suggests supply may be growing. Surveyors completed an average of just 14.7 sales each last month and only 5pc more reported a rise in the number of sales compared to a fall. Meanwhile, new vendor instructions increased by a balance of 15pc.

This means house prices remain under pressure, with 28pc more surveyors reporting price falls rather than rises in May. Looking forward, 27pc more respondents in the survey expect prices to fall rather than rise over the next three months.

Many surveyors blamed the number of bank holidays in April, including the Royal Wedding weekend, for the flattening of demand in May with new buyer enquiries down for the month.

However, London – where ￡3.7bn of foreign money is pouring into prime property every year – continued to outperform in May. It was the only region to report a rise in house prices in the month. In contrast, the West Midlands had the highest balance of surveyors who reported further price drops at 64pc, followed by Wales and Northern Ireland, both at 43pc.

Ian Perry, a spokesperson for RICS, said: “Buyer interest in purchasing property remains flat across much of the country and there is little sign of this changing any time soon. Uncertainty over the economic outlook remains as important as the availability of mortgage finance in depressing demand.

“On the other hand, the appetite to rent is continuing to grow. And, with little new supply coming onto the lettings market, the cost of renting is increasing and will continue to do so.”

The RICS survey is in line with figures released by Halifax and Nationwide for May, which also pointed to a subdued market.

Halifax said house prices remained broadly unchanged during the month, rising by just 0.1pc, while Nationwide said they crept ahead by 0.3pc.

Visit Telegraph Mortgage Services for free mortgage advice