House prices ‘back to 2008 level’

House prices in the UK have recovered to the same levels as a year ago, according to figures released by Nationwide.

The average price of a home last month rose by 0.9% to £161,816, almost identical to September 2008. House prices have now risen for five months in succession.

Nationwide have predicted that the worst of the recession is over but that house prices are unlikely to carry on rising at their present rate.

"The most intense phase of the recession and financial crisis has probably passed. However, given that the housing market still faces considerable headwinds in the form of high unemployment, restrictive credit conditions and an impending withdrawal of the stamp duty holiday, it would be surprising to see house prices continuing to increase at the recent very strong rate," said Martin Gahbauer, the Nationwide's chief economist.