House prices hit a fresh record in June with prices rising a staggering £104 a day on average in the first half of 2022.

Despite expectations the rising cost of living in the UK would dampen demand, the Halifax said the average house price reached £294,845 in June after rising by 1.8 per cent - the steepest monthly increase since 2007.

In the first six months of this year average house prices have climbed £18,849.

Halifax said a lack of available homes for sale was lifting prices as well as a shift towards people buying larger, detached homes.

However, it expects price growth will slow.

Halifax said that the housing market had, so far, been largely insulated from the rising cost of living.

The BBC quoted Halifax managing director Russell Galley as saying: "This is partly because, right now, the rise in the cost of living is being felt most by people on lower incomes, who are typically less active in buying and selling houses.

"In contrast, higher earners are likely to be able to use extra funds saved during the pandemic."

House prices rose by 13% in the year to June, which Halifax said was the highest rate since late 2004.

Halifax expects, however, that the "increased pressure on household budgets from inflation and higher interest rates should weigh more heavily on the housing market, given the impact this has on affordability".

Mr Galley added: "So while it may come later than previously anticipated, a slowing of house price growth should still be expected in the months ahead."

Punchline says: "The issue that is slowing the housing market in Gloucestershire is lack of housing stock. There's enough buyers but not enough houses. There's a bun fight among estate agents.

And we've heard that banks are turning down mortgages because houses are being over-valued and there's a risk of defaulting."