LONDON (AP) — UK house prices rose 0.8 percent in August, the nation's biggest mortgage lender said yesterday, in another sign of recovery in the depressed home market.

It was the second consecutive monthly rise reported by Halifax.

Earlier, the Nationwide Building Society, the nation's third-largest mortgage lender, said house prices rose by 1.6 percent during the month. Both companies' figures are based only on their own lending. Halifax said the average home price in August was still 10.1 percent below last year.

In an indication that the market may now have stabilised, Halifax said prices in August were now back to December levels.

"Demand for housing has increased since the start of the year due to better affordability and low interest rates," said Martin Ellis, Halifax's housing economist.