House Prices in the UK

Nationwide reported that prices went up 0.9  per cent last month, the first increase since October 2007.

An economist at Investec, said: "The
Halifax numbers really confirm that the underlying trend for house prices is still down and will remain the case until the end of the year."

The Halifax said that year-on-year prices had fallen 17.5 per cent, a modest improvement on the 17.7 per cent fall seen in February.

Yesterday's news from the Nationwide was described by experts as a “narrow shaft of sunlight” for homeowners after 18 months of almost unremitting gloom.

Signs of recovery?

Nationwide's figures show that prices of flats have been more volatile than other types of properties.

The figures come shortly after the Bank of England reported that mortgage approvals for house purchases in Britain rose more than expected in February.

The rise in mortgage approvals by all lenders - to 38,000 approvals in the month, up from 32,000 in January - is a good short-term indicator of actual lending and suggests this may now pick up.

Recent surveys from the Royal Institution of Chartered Surveyors (Rics) have shown rising interest from prospective buyers.