House prices show more stability

House prices in England and Wales stayed the same from April to May, according to property data firm Hometrack . This is the first time the survey has shown no monthly fall in 20 months, couple that with the report from Nationwide last week that prices had increased 1.2%, then we are seeing signs of some house price stability.

Hometrack said the average price stayed at £155,600 partly due to a rise in sales and a shortage of supply. The report showed that number of buyers registering with estate agents was up 21% in the three months to May while the number of new properties on the market only increased by 2.5%.

Richard Donnell, Hometrack’s director of research, said: “While house prices remain unchanged over May the outlook for the housing market remains fragile with a number of factors that could well de-rail the recent pick up in market activity...Given the weak outlook for the economy, house prices are expected to remain under downward pressure for the foreseeable future.”