The BBC reports:
UK house prices have now recovered to the same level as a year ago, according to the latest figures from the Nationwide.

The average price of a home last month rose by 0.9% to £161,816, almost identical to September 2008.

The most intense phase of the recession and financial crisis has probably passed,” said Martin Gahbauer, the Nationwide’s chief economist.

“However, given that the housing market still faces considerable headwinds in the form of high unemployment, restrictive credit conditions and an impending withdrawal of the stamp duty holiday, it would be surprising to see house prices continuing to increase at the very strong rate seen in recent months,” he added.

David Smith, of property consultancy Carter Jonas said
“We have to expect more turbulence ahead, specifically as a result of rising unemployment and interest rates,” he said.

“This toxic combination will bring more property on to the market as people struggle to meet their repayments, which will apply downward pressure on prices and potentially reverse the recent trend, at least for a time,” he added.

‘Accidental landlords’

Another factor that might depress house prices again would be if “accidental landlords” now decided to sell their homes instead of letting them to tenants, the Nationwide said.