HOUSE prices have risen for the fifth month, fuelling hopes that the economy is bouncing back.

They jumped by an average £53 a day - 0.9 per cent - during September to £161,816, according to the Nationwide building society.

It means prices are now back where they were a year ago before US banking giants Lehman Brothers collapsed at the height of the credit crunch.

Over the last quarter, the average price of a house in Scotland rose to £140,175 - an increase of 3.4 per cent.

Some experts said the data suggested Government measures to support the economy were working.

But others warned there could be "relapses" unless banks made it easier to borrow.

Nationwide chief economist Martin Gahbauer said the figures suggested the "most intense phase of the recession and financial crisis has probably passed".

But he warned "considerable headwinds" such as rising unemployment and the end of the stamp duty holiday made it unlikely prices would continue rising so steeply.

Dr Howard Archer, chief economist at finance analysts Global Insight, said buyers were starting to believe the market hit rockbottom in February.

Now they were hoping to snap up bargains while interest rates remained low.

The Nationwide survey showed prices are now higher in every part of the UK than they were three months ago.