Rise reported in UK house prices

House prices rose 1.2% in May offering evidence of activity in the UK housing market, according to figures from the Nationwide building society.

The annual rate of house price falls eased from 15% in April to 11.3%, with a typical home now costing £154,016.

Over the past three months house prices fell by 0.5% compared with the previous three-month period, the lowest quarterly drop since January last year.

Changes in house prices depended on the balance between the demand from buyers and supply from sellers.

It is still too early to say that the market is turning definitively according to experts.

The ratio of sales to the unsold stock of properties on estate agents' books has stabilised leading to some of the rises in house prices in recent months. Reasons could include potential sellers holding back, fearing that they would not be able to get the price they wanted in the current economic conditions, and fewer homes being built.

"It seems as though we are now bumping along the bottom rather than spiralling downwards. This is typical of the beginnings of an upturn which is typically characterised by a slow start with some mnor set-backs followed by a long upward swing" Mark Mills commented.