House prices over the three months to May were 1.5 per cent greater than in the preceding period, according to the latest Halifax house price index, which recorded a rise of 0.4 per cent in the past month.
Prices in the three months to May were 2.6 per cent more than in the same period three months a year earlier. This was the biggest increase since September 2010, when there was similarly a recorded year-on-year rise of 2.6 per cent.
Martin Ellis, housing economist for the Halifax, said: “House prices continue to pick up gradually. Prices in the three months to May 2013 were 1.5 per cent higher than in the preceding three months.
“This was slightly higher than the 1.3 per cent increase in the three month-on-three month measure in April.
“Market activity has also improved slightly in recent months, although home sales remain low by historical standards.
“Despite these recent signs of improvement in the housing market, the subdued economic background and the accompanying weak income growth continue to be a significant constraint on housing demand and activity.”
.
