House prices in the three months to May were 0.8% higher than in the preceding three months, according to the latest Halifax House Price Index.
This was the second successive increase in this measure of the underlying trend in prices following six consecutive falls between October 2011 and March 2012. It was the biggest three-monthly increase since August 2011 (+0.9%).
On a monthly basis, house prices increased by 0.5% in May. This follows the significant monthly rises and falls recorded in the previous two months: +2.2% in March and -2.3% in April.
However, prices in the three months to May were 0.1% lower than in the same period 12 months ago.
The UK average price in May 2012 was 0.7% higher than in December 2011, at £160,941.
“Whilst there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year,” said Martin Ellis, Halifax housing economist.
“We expect this situation to continue with prices likely to still be around today’s levels at the end of 2012 as the ongoing tough economic environment constrains housing demand.
“Recent monthly house sales figures have clearly been affected by the ending of the stamp duty holiday for first-time buyers in late March. Overall, the trend for sales – like that for prices – appears to be one of broad stability,” he added.