The Halifax House Price Index shows that prices rose by 0.3 per cent in September. The average house price is now £72,748m.
Annual house price inflation rose by 0.1 per cent last month to 5.4 per cent. The forecast for the fourth quarter is 5 per cent falling to 4 per cent in the fourth quarter of 1999.
The price paid by first-time buyers was 4.6 per cent higher than a year ago and previous owner-occupiers paid 5.5 per cent more.
Halifax says the figures suggest that the housing market is continuing to grow at a moderate rate.