UK house prices have experienced their first quarterly increase in two years and risen for three months in succession, according to figures released by the Halifax.

The average home rose in value by 1.6% in September compared with the previous month and is now worth £163,533.

The Halifax has attributed the rise to increased demand, a lack of supply and the historic low interest rate.

"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," said Martin Ellis, housing economist at the Halifax.