News released yesterday from the Nationwide Building Society, reports a 0.9 percent rise in house prices for June. The small rise, (less than May’s 1.3 per cent increase, but meaning a cumulative three month rise), gives fresh hope to a return to stability for the property market, and a boost to anyone trying to sell their home.

The minor increase means that the cost of an ‘average house’ rose by just over £2000. (example given in The Times – £156,442 in June, as opposed to £154,016 in May). Average house prices are now still nearly 10% lower than they were this time last year.

Hopes of the housing market recovering further were supported, albeit in a fragile manner, by the Bank of England’s ‘approved mortgages’ figures for April and May. Whilst failing to meet Analysts expected figures, the number of approved mortgages did rise, but by less than 250.

However, warnings against advanced surges in optimism come from Howard Archer (a renowned economist) who states that the supply of properties, combined with the employment market, will contribute to the overall economic recovery, and we should continue to monitor buyer interest.

Further news reported on the BBC states that the UK economy contracted by 2.4%, its largest first quarter contraction in over fifty years. Economic contraction meant that ‘real household disposable income’ fell by 2.4%. It has also been reported that although Halifax conducted their own house price surveys which concurred with the Nationwide Building Society, The Land Registry survey into house prices reported that house prices in Wales and England actually fell by 0.2% in May!

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