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Hopes For House Prices - The Financial Times

Fresh evidence emerged this week that the rate of house price declines is easing – but most experts believe it is still too early to call the bottom of the market.

A number of estate agents have reported an increase in trading activity recently, which has helped underpin prices in some areas.

Research from Hamptons International showed that the number of sales rose 27 per cent in April, compared with the previous year, and vendors were now three times more likely to secure a sale than a year ago.

Chesterton Humberts, another agent, said the average price of a property fell by £1,575 in April, compared with the previous six-month average of £2,649.

Meanwhile, the Royal Institution of Chartered Surveyors (Rics) issued its most optimistic monthly survey since August 2006, which said buyer inquiries had risen for the sixth consecutive month, while sales had also edged up, albeit from a low base.

However, while the price falls are expected to slow in some areas – namely prime parts of London and the south where property is in short supply – there is little sign of an upturn.

“There are signs of improvement with activity levels up and price falls beginning to slow but we are not looking at a rapid bounce back by any means,” said Yolande Barnes, a director at Savills, the agent.

According to the latest FT house price index, prices across England and Wales fell 1.1 per cent last month and look set to fall further