Home prices in the UK have increased almost a half per cent in the month of July. The average cost of a home now in England and Wales has reached 166,798 pounds. Prices overall have increased almost 7 per cent over the past year. These figures provided by the Land Registry.

Nine regions saw the value of their respected properties increase over the last year. London saw the biggest jump at a little over 12 per cent. Conversely, property values in the north-east have fallen by about 1.4 per cent.

The total number of home sales has also increased in the last year. England and Wales experienced a surge of about 8 per cent, while sales of expensive properties (valued at more than 1 million pounds) soared. A 67 per cent increase in sales occurred between May 2009 and May 2010, from 255 to 426.

David Newnes, managing director of LSL, owner of national chains Your Move and Reeds Rains, commented on the housing industry, saying: "House prices showed signs of growth in July as buyers took advantage of a slight easing in lending conditions to secure their new home.

"That's not to say the house prices will resume a sustained upwards climb. We don't expect a return to the mini-boom of late last year, but the likelihood of a significant slide in prices is small too – it is more likely we will see steady change.

"Monthly house price fluctuations are likely to continue in the short term, and there will be strong regional variations, particularly as the coming budget cuts hit some parts of the country more severely than others."

He added, recovery in the long term for the market involved lenders offering first time buyers more attractive loan products. He said: "Thousands of would-be buyers are waiting for the finance to grasp the first rung on the property ladder, and unlocking this demand is crucial to the market's recovery."

Andrew Smith, research director at Primelocation.com, commented on possible home buyers concerns saying: "Top-end vendors have continued to put their properties on the market and now that buyers have a healthy range of quality property to choose from, upward pressure on prices has eased in all but the most sought-after areas. This trend has been exaggerated as buyers put their search on hold over the summer and act with increased caution due to renewed fears of a downturn in the economy."