House prices on the rise

House prices increased by 0.9 per cent in the UK last month, new statistics have shown.

Research from the Nationwide Building Society revealed that during September property rose in value for the fifth month in a row.

The organisation claimed that home prices have increased by 4.1 per cent in 2009 so far, though they are still 13.5 per cent lower than at the peak of October 2007.

Martin Gahbauer, chief economist at Nationwide, indicated that rent prices are remaining subdued despite the property price rise.

He stated: "The available evidence suggests that rents are currently lower than where they started the year, thus putting downward pressure on rental yields.

"The further increase in house prices is very much consistent with improvements in a broad range of economic and financial indicators over the last few months, all of which suggest that the most intense phase of the recession and financial crisis has probably passed."

Houses in Britain are currently worth an average of £161,816, Nationwide figures indicated.

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