UK house prices rose in April for the first time in seven months, according to the latest data from Nationwide.
From March to April the cost of an average home rose by 0.5% to reach £260,441.
However, prices were still down 2.7% on a year ago and remain 4% below their August 2022 peak.
The market was hit hard by the fallout from last September’s “mini Budget”, which led to soaring mortgage interest rates.
Nationwide’s chief economist, Robert Gardner, said the figures show “tentative signs of a recovery”.
It comes after industry data on mortgage applications pointed to signs of a pickup. There has also been a marked improvement in consumer sentiment in recent months.
“If inflation falls sharply in the second half of the year, as most analysts expect, this would likely further bolster sentiment, especially if labour market conditions remain strong,” Gardner explained.
“This, in turn, would also be likely to support a modest recovery in housing market activity.”
Gardner added, however, that any upturn is likely to remain “fairly pedestrian” as average earnings are still failing to keep pace with inflation and mortgage rates are still more than double the level prevailing a year ago.
