According to the latest Hometrack survey, the drop in house prices in March was the smallest decrease in more than 6 months, which may point to the end of house price deflation.
Average prices now stand at £162,300 down from a peak of £167,700 in June last year. There has been an increase in the number of buyers helping to boost the number of sales agreed, which points to a much stronger market in the coming months.
Our view
All along we have predicted stabilisation which we believe will lead to another interest rate increase.