UK house prices rose by another 1.2% in October, according to the Halifax, which the bank says is the fourth monthly increase in a row.

The Halifax said that the average price of a house was £165,528, which is still 4.7% lower than October last year. Since the spring house prices have been recovering from the sudden slump caused by the international credit crisis.

The Halifax said prices were rising because of a combination of increased demand and fewer houses for sale.

“Nationally, house prices have risen by 2.9% since the end of 2008 [and] they are now 7.1% higher than six months ago when prices reached a trough in April,” said Martin Ellis, the Halifax’s housing economist.