London - British home prices rose by 1.1 percent in July from the level the previous month, but fell over 12 months, a survey from home-loans provider Halifax showed on Wednesday.

Halifax - part of the state-controlled Lloyds Banking Group - added that the prices of homes in July were 12.1-percent lower compared with the level in the same month of 2008.

"Demand for homes has risen, albeit from a very low base, since the start of the year, driven by improvements in affordability and low interest rates," said Halifax housing economist Martin Ellis in a statement.

He added: "Higher demand has combined with the low levels of property available for sale to boost sales activity from exceptionally low levels and support prices over the past few months."

According to Halifax, the average cost of a British home stood at #159 623 (about R2.1 million) in July 2009.

Last week, another major home-loans provider, Nationwide, had said British house prices rose by 1.3 percent in July from June, leaving the average cost of a home at almost #159 000.

Nationwide had also said prices were 1.3 percent higher so far this year and could finish slightly higher for the year as a whole.