According to Halifax, the average cost of a home went up by 1.8% last month, improving September’s record fall of 3.7%.
Despite the increase, the group warned that house prices were still trending down.
Martin Ellis, housing economist for Halifax, said: “We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended time, which will continue to support the improved mortgage affordability position for homeowners.”
The group reported that property transactions are running at half their normal level, increasing the volatility in monthly house price changes.
The quarter-on-quarter change, which provides a clearer indication of the overall market trends, showed a rapid increase in the rate that property prices are dropping.
In the three months to October, house prices dropped 1.2% in value, the biggest quarterly decline since July 2009.
However, the group said that the rate of decline was significantly lower that the quarterly decline of more than 5%, during the second half of 2008.
The group revealed that the average price of a home is currently £164,919, which is £10,256 higher than in April 2009.
