House prices increased by 0.5 per cent in May compared to the previous month, bring them less than 10 per cent below the level they were when they were at their peak in 2007.

According to the latest house price survey from Nationwide, the average house price now stands at £169,162, up from £167,802 in April, which saw a 1.1 per cent rise on March’s figures.

House prices have risen 12.2 per cent since they troughed in February 2009, the figures from Nationwide show.

The survey also found that the annual rate of house price inflation dropped from 10.5 to 9.8 per cent, which, according to Martin Gahbauer, Nationwide’s chief economist, “reflects the weaker pace of increase in May 2010 relative to May 2009.”

Commenting on the survey’s findings, he said: “Since reaching a trough in February 2009 – following a drop of 19.3% from their October 2007 peak – house prices have risen by 12.2% and are now just 9.5% below the October 2007 peak.”

The latest Land Registry figures have also shown a consistent rise in house prices, citing six consecutive monthly increases as a positive sign foe the housing market.

“All regions in England and Wales experienced increases in their average property values over the last 12 months,” it said in a statement this week.

© Fair Investment Company Ltd