House prices in the UK rose for the fifth consecutive month in September 2009.

According to latest figures from Nationwide, house prices rose by 0.9% in September and are now at the same level as prices in 2008.

In September, house prices increased for the fifth consecutive month and the average house cost £161,816, almost identical to prices this time last year.

Despite the positive upward trend in house prices in recent months, Nationwide warned that the increases were unlikely to continue at the present rate as more properties are likely to come onto the market.

The three month on three month rate, generally considered to be a smoother indicator of a trend, rose from 3.3% in August to 3.8% in September.

Martin Gahbauer, Chief Economist at Nationwide, said: “The further increase in house prices is very much consistent with improvements in a broad range of economic and financial indicators over the last few months, all of which suggest that the most intense phase of the recession and financial crisis has probably passed.

“However, given that the housing market still faces considerable headwinds in the form of high unemployment, restrictive credit conditions and an impending withdrawal of stamp duty holiday, it would be surprising to see house prices continuing to increase at the very strong rate seen in recent months.”

Mr Gahbauer added that another reason to be cautious about the stabilisation of house prices is the low turnover in the market. Turnover in the housing market is still lower than it was prior to the economic downturn.