Halifax has today revealed figures that it suggests are evidence of a continued slowdown in the housing market, but a closer look reveals that growth in the sector is continuing to confound observers.

While the lender advises that July saw the fourth consecutive month of growth running at under one per cent, the facts are that there was an increase in July, up to 0.7 per cent from 0.4 per cent in June.

Similarly, the annual rate of inflation is now 11.2 per cent - this is the highest level recorded by the study since February 2005.

Halifax chief economist Martin Ellis acknowledged that growth was likely to continue in the long-term.

"Sound economic fundamentals, high levels of employment and a shortage in the number of properties available for sale, particularly in London and the south-east, will, however, continue to support house prices," Mr Ellis said.

By contrast, Hometrack reported this week that house price growth for July was just 0.1 per cent.