<p>UK house prices rose 1.6% in September according to Halifax, with the average home now costing £163,533.</p> <p>This is the third consecutive month that prices have risen, says Halifax, and figures are now showing the first quarterly increase for two years - prices rose by 2.8% in the three months to September compared to the previous quarter.</p> <p>Hallifax figures show that house prices have risen by 1.7% in 2009 but are still 7.4% down on a year ago - this is in contrast to last week's Nationwide figures which found that house prices have returned to the same level as September 2008.</p> <p>Halifax housing economist Martin Ellis said: "The combination of increased demand and a low level of properties available for sale has pushed up house prices in recent months. The marked improvement in affordability due to the reduction in both property prices and interest rates since mid 2007 has been a key factor in stimulating higher demand."</p> <p>However he warned that demand may ease as unemployment rises and wage increases slow, while supply may increase as properties come onto the market - both these factors could lead to a curb in house price increases in the near future.</p>