(Bloomberg) -- UK house prices continued to shrug off cost of living fears in June, posting the biggest monthly rise since early 2007, according to Halifax.

A shortage of properties coming on to the market combined with continuing strong demand saw prices rise for a 12th consecutive month, the mortgage lender said in a report Thursday. 

Compared with the same month last year, prices were up 13% -- the fastest annual growth rate since late 2004. It took the average property value to a new record of £294,845 ($352,160).

“The UK housing market defied any expectations of a slowdown,”said Russell Galley, managing director at Halifax.

“The supply-demand imbalance continues to be the reason house prices are rising so sharply. Demand is still strong -– though activity levels have slowed to be in line with pre-Covid averages -– while the stock of available properties for sale remains extremely low.”

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