House prices in the UK increased by 1.8% in October compared with September, according to data released by the Halifax.

However, this figure is boosted as it follows the biggest monthly drop on record when house prices dropped by 3.6% in September, compared with the previous month.

The more stable three-month on three-month comparison showed property values dropped by 1.2% and that the average home now costs £164,919.

"An increase in the number of properties available for sale in recent months, together with a decline in demand, has put some downward pressure on prices in recent months. We do not believe that prices are set to fall sharply over a sustained period," said Halifax housing economist Martin Ellis.