House prices showed a marginal increase on a quarterly basis last month, new Halifax figures have shown, while falls in mortgage rates have improved accessibility to the housing market.

Data from the lender revealed values were one per cent higher in August than in the previous three months, with the average cost of a home now standing at £161,743.

However, prices were down 1.2 per cent on a monthly basis, following three consecutive months of rises.

Martin Ellis, housing economist at Halifax, noted the quarterly figure is "more reliable" as it "smoothes out some of the monthly volatility" and added home affordability is up following a decline in average mortgage rates, provided buyers are able to raise a sufficient deposit.

Chief executive at London Central Portfolio Naomi Heaton recently predicted property prices in the centre of the capital could be set to increase in the near future, rising to pre-recession levels.