Investment Articles
'Surprise Bounce' in House Prices - BBC News
House prices rose in March for the first time since October 2007, according to the Nationwide.
The figures come shortly after the Bank of England reported that mortgage approvals for house purchases in Britain rose more than expected in February.
The rise in mortgage approvals by all lenders - to 38,000 approvals in the month, up from 32,000 in January - is a good short-term indicator of actual lending and suggests this may now pick up.
Recent surveys from the Royal Institution of Chartered Surveyors (Rics) have shown rising interest from prospective buyers.
Earlier this week, Bank of England data showed approvals for new mortgages hit 38,000 in February, their highest in nearly a year.
Simon Hayes, economist at Barclays Capital, said that thanks to "the improvement in mortgage approvals and the rise in buyer enquiries that Rics has been showing, there are tentative indications the housing market may be stabilising".
"It may be six months to a year before we see a durable recovery," he added.
On Monday, the Nationwide said it was to buy the Dunfermline Building Society's branches, good loans and deposits.
The Scottish mutual was put up for sale after incurring losses of £26m.