UK house prices rose by 1.3% during August, the largest increase in over two and a half years, offering some hope to beleaguered house sellers.
The price of an average home now stands at £164,729, marginally higher than July's figure of £164,389.
Despite the large monthly increase, Nationwide Building Society's House Price Index revealed that year-on-year house prices fell by 0.7%. This was an improvement on the annual fall of 2.6% reported in July, however.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: " UK house prices rose by 1.3% in August, the largest monthly increase since January 2010, reversing the declines recorded in the previous two months.
"Given the difficult economic backdrop, the extent of the rebound in August is a little surprising. However, we should never read too much into one month's data, especially since monthly price changes have been impacted by a number of one-off factors this year, such as the ending of the stamp duty holiday for first time buyers."
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