Further rise in house prices recorded
The 1.6 per cent increase compared to July marked the fourth successive growth in values, with the typical home now costing more than £160,000.
Although prices are 2.7 per cent below the level of August 2008, chief economist at the building society Martin Gahbauer observed a particular positive indicator.
In news that could provide a boost to the building industry, he explained that the three month on three month rate of change is at its highest level since February 2007.
Mr Gahbauer added: "The exceptionally low level of interest rates offers some explanation for why house prices have not repeated the very sharp falls of 2008."
It comes after housebuilder Bovis, in its interim management report, suggested that the UK property sector appears to have stabilised, with the rate of decline in values slowing and mortgage approvals rising.