Good news travels fast and the Halifax has already released details of its latest survey showing that house prices in the UK rose by 2.6 per cent compared with April.
Of course, not too much emphasis can be placed on only one month’s figures but following property price decreases for three months in a row, this can only be good news.
The survey from the Halifax, now part of the Lloyds Banking Group, showed the UK average house price at £158,565 now.
To gain a better indication, and a less volatile one, figures from the last three months are usually compared to the three months prior to that. From June last year to January this year, the three month figures showed 5 per cent and 6 per cent declines respectively but in the last three months this decline now drops by 3.1 per cent.
“There are some tentative indications of a possible stabilisation in activity, albeit at a low level,” said Nitesh Patel, the group’s housing economist. “It is always important not to place too much weight on any one month’s figures. Historically, house prices have not moved in the same direction month after month even during a pronounced downturn.”
Indeed, during 1991 and 1992, as Patel pointed out, there was an overall decline of 11 per cent and yet there were still five single month price rises.
The Nationwide has also shown a 1.2 per cent increase in May’s figures and the monthly rise is still the highest since October 2002 so it is still good news for the housing market.