According to nationwide house prices have started to increase and have had the biggest increase last month but experts have said this is not the start of the housing boom.

Nationwide reported a 1.6 per cent increase in August to an average house of £160,000 and house prices are now only down 14.4 per cent compare to that of October 2007 when they were at the peak.

The reason why so many properties have not come on to the market is that because interest rates kept falling it meant that people were able to afford their larger mortgages and not forcing them to sell which in turn has helped house prices to start to recover.