House prices increased by 0.2% in August, according to the Halifax. This was the second successive monthly increase following a 0.7% rise in July.

The Halifax found that house prices in August were 4.6% higher on an annual basis as measured by the average for the latest three months against the same period a year earlier. This was slightly below the 4.9% increase in July, continuing the recent downward trend andcompares with a high of 6.9% in May.

Prices in July were marginally lower (-0.5%) than at the end of 2009. The current average house price of £167,953 is 9% above its April 2009 low, but remains 16% below its August 2007 peak.

Martin Ellis, housing economist, said: “This