The latest monthly house price index from Nationwide has revealed that UK house prices fell by a marginal 0.1% between March and April, bringing the typical value of a UK home to £165,586.
The Index also revealed that the picture for property price growth was more positive year-on-year with house prices climbing by 0.9% last month, compared to April 2012.
Robert Gardner, Nationwide’s Chief Economist, said that despite the small fall in house prices, there were a number of signs that housing market was becoming more buoyant.
“House prices were little changed in April, declining by 0.1% compared to March after taking account of usual seasonal effects. Nevertheless, there is some evidence that activity and prices have gained some momentum in recent months,” he said.
“The three month on three month measure of house prices, which is a smoother measure of the underlying trend, has been in positive territory since October last year. The annual rate of house price growth also remained in positive territory, with prices 0.9% higher than April 2012.”
According to forecasts from the Ernst & Young ITEM Club the overall upward trend in house prices is set to continue in the coming years with property values expected to make a gradual return to pre-crash levels.
Figures from the ITEM Club predict that house prices will climb by 2.1% in 2014, before soaring by figures of 5% and 6% over the following two years.
Further forecasts made by ITEM Club include the fact that the number of housing transactions in 2013 will grow by 7.5% to reach 1 million.
This figure is set to climb further in 2014 as a result of the government’s Help to Buy scheme, which allows buyers to snap up a new build home with a 5% deposit, which is also supported by a 20% government equity loan.