Property Prices increase, by London mortgage broker, London Mortgage Advice Friday, 5th June 2009

According to the Halifax House Price Index, UK property prices increased by more than £4,000 in May, with the average house price rising by 2.6% during the month, the biggest monthly rise since 2002.

This indicates a stabilisation in the property market.

Following the latest data from Nationwide, which recorded a 1.2% increase in house prices in May, the second consecutive monthly increase, thesw figures semm ot back that one up.

Halifax calculates that the average property is now worth £158,565, a similar level to mid-2004.

Halifax housing economist, Nitesh Patel,said: "It is always important not to place too much weight on any one month's figures.Historically, house prices have not moved in the same direction month after month even during a pronounced downturn. For example, prices fell by 11% nationally during 1991 and 1992, but there were five monthly price rises in this period. House sales remain substantially below their long term average and market conditions are expected to remain difficult with housing activity continuing at low levels over the coming months.”

however despite these rises there a re many observers who believe that, while activity in the property market may be picking up, prices have further to fall this year.