The latest figures from Nationwide revealed that house prices rose in March for the first time since October 2007, but the building society warned against over-optimism.
House prices rose during March, marking the first increase since October 2007, according to new figures from Nationwide Building Society.
The average cost of a home increased by 0.9 percent during the month, leaving it at £150,946, compared with £147,746 in February. However, the rise in March was less than half the size of the 1.9 percent fall in February and prices were still 15.7 percent less than in March 2008.
Chief economist at Nationwide Fionnuala Earley commented that the increase in March represented a "surprise bounce" and should not necessarily be seen as a sign that the housing market has recovered.
"The moderation in the annual rate of fall is somewhat distorted by conditions last year and so it would be unwise to draw strong conclusions from the significant slowdown in the annual rate of fall," she said. "Equally, while the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached."
While the Bank of England has sought to boost the sector by lowering the base rate to a record low of 0.5 percent and introducing quantitative easing, Ms Earley suggested that "it will take time for these to work through into the housing market".
