British house prices rose 1.3 per cent during October to reverse the falls of previous months.
At the same time, the annual rate of price growth rose for the first time for more than a year, although at 3.3 per cent it remains well down on levels of more than 15 per cent seen this time last year.
According to Nationwide Building Society, the average cost of a home in the United Kingdom is now £157,107, compared with £152,159 in October 2004.
The group said August's interest rate cut was behind the recovery in prices and renewed interest in moving home among potential buyers.
The figures come the day after the Bank of England said the number of mortgages approved for people buying new homes had risen to a 15-month high.
However, Nationwide said over the three months to the end of October, prices edged ahead by a total of just 0.2 per cent.
Fionnuala Earley, Nationwide's group economist, said although there were signs of increased interest in the market, it was too early to say if it had reached a turning point from which prices would continue to accelerate.
PA