House prices increased for the fourth successive month in October, according to the latest Halifax House Price Index.
House prices rose by 1.2 per cent during October, marking the fourth monthly increase in a row.
Prices in the three months to October were 2.9 per cent higher compared to the previous three months.
Nationally, the average house price has risen by 2.9 per cent (£4,667) since December 2008.
However, house prices in October 2009 were 4.7 per cent lower than in October 2008.
Martin Ellis, housing economist for Halifax, commented: "Demand for houses has risen in recent months due to the very low level of interest rates, the decline in property prices since the summer of 2007 and a pick-up in consumer confidence on the back of better economic news.
"Higher demand has combined with a low level of properties available for sale to result in rising house prices over the past few months.
"There are some indications that more people are deciding to put their homes on the market, encouraged by the recent improvement in market conditions.
"A continuation of this trend could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance."
Read the Halifax October House Price Index in full.