Although properties have declined 11.3% year-on-year, it is a marked improvement on the 15% annual decline seen in April. Martin Gahbauer, chief economist at Nationwide, says: "Although the short-term trend in house prices has clearly improved from where it was at the beginning of the year, it is still too early to say that the market is turning definitively."

But he adds: "Nonetheless, the improvement in house price trends is consistent with signs of a stabilisation in several other economic indicators and suggests that any further price declines may occur at a less rapid pace than in 2008." "Furthermore, and perhaps most importantly for housing, many potential buyers still cannot get access to any kind of realistic mortgage finance.”