House prices increased by 1.6% in September, the third consecutive monthly increase and the fifth so far this year, according to the latest Halifax House Price Index.
This means that house prices nationally have risen by 1.7% since the end of 2008, the lender said.
House prices increased by 2.8% in Q3. This was the first quarterly rise for two years (Q3 2007) and the biggest since Q1 2007 (2.9%).
The UK average house price in September was 1.7% (£2,672) higher than at the end of 2008. Prices have risen by 5.9% since their low in April 2009 an increase in the average price of just over £9,000.
The national average price is currently at a similar level to that in mid 2005.
House prices in September were 7.4% lower on an annual basis. The annual rate of change (measured by the average for the latest three months against the same period a year earlier) has fallen markedly from a low of -17.7% in April. It is at its lowest since June 2008 (-6.1%).
Martin Ellis, Halifax housing economist, said: “The combination of increased demand and a low level of properties available for sale has pushed up house prices in recent months. The marked improvement in affordability due to the reduction in both property prices and interest rates since mid 2007 has been a key factor in stimulating higher demand.
