Results from the Halifax UK house market survey show that prices rose by 1.2% in September due to increased activity over the previous month.

Despite this, the annual rate of inflation is much reduced from this time in 2004, and now stands at 3%, compared with the 20.5% recorded in the third quarter of 2004.

Prices are not rising in all areas, however, with falls recorded in the south-west, falling 1.5%, and in the south-east where they were down 1.1%. East Anglia showed a reduction of 0.8% and in the east Midlands dropped by 0.4%.