UK house prices rise at the fastest rate for 18 years

Imbalance between supply and demand continues to drive up prices despite cost of living crisis

House prices in the UK rose at the fastest annual rate in 18 years last month as demand - especially for larger homes - continued to outstrip the number of properties on the market.

Halifax, one of the country's biggest mortgage lenders and part of Lloyds Banking Group, said the market defied any expectations of a slowdown", with prices rising year on year in June by 13%, the highest since late 2004. Prices rose 1.8% compared with May, which was the biggest monthly rise since early 2007.