House prices rose by 1.2 per cent in September from August, the sixth increase in a row, further bolstering evidence that Britain's battered property market is over the worst.

The rise pushed the average cost of a UK home to £199,303 — a level not seen since November 2008, according to figures from the Department of Communities and Local Government (DCLG).

The annual rate at which prices are falling also slowed to 4.1 per cent in September from 5.6 per cent in August and a peak of 13.6 per cent in March. The figure is the lowest for 13 months.

The 1.2 per cent month-on-month rise in September was the fourth increase in a row on a seasonally-adjusted basis — and the sixth on an unadjusted basis.

Howard Archer, chief UK and European Economist at IHS Global Insight, said thet the data "adds to the widespread evidence that house prices troughed around March and have been firming ever since".

He said that the recent revival in house prices is a consequence of "sharply reduced mortgage interest rates and more affordable prices due to the pretty substantial fall in house prices from their 2007 peak levels".

Prices had also been supported, he said, by a shortage of properties on the market.

However, he warned that the mini-revival seen since early this year was unlikely to be sustained for much longer because of factors including high unemployment and low earnings growth.

The DCLG survey is the latest to suggest an upturn in the housing market. A recent survey from the Royal Institution of Chartered Surveyors found that house prices rose in October despite more properties coming on to the market.

The institution's figures showed an increase from 21 per cent to 34 per cent in the number of surveyors reporting a price rise rather than a fall in October — the third positive month in a row.

Yesterday the British Retail Consortium reported that Improvements in the housing market have also helped the wider economy through a boost in sales of furniture and flooring.

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