UK house prices increased by 0.4% in May, after taking account of seasonal effects. This resulted in a slight pickup in the annual rate of house price growth to 1.3% in April, from 0.6% the previous month.

Commenting on the figures, Nationwide’s chief economist Robert Gardner said: “The market appears to be showing signs of resilience in the face of ongoing affordability pressures following the rise in longer term interest rates in recent months. Consumer confidence has improved noticeably over the last few months (see chart below), supported by solid wage gains and lower inflation.”

Fine & Country estate agent managing director Nicky Stevenson pointed out that house prices had been yo-yoing from economic gales, but May’s figures indicated calmer waters ahead for the housing market.

“Previously hesitant home buyers are feeling more confident to pull the trigger on moving plans as financial strains ease.

“With inflation moving closer to the government’s 2% target and potential interest rate cuts this summer, demand may surge further into 2024. This will help to stabilise or even nudge prices upwards amid buyer competition – a positive development for sellers.”

Stevenson said lenders were also lowering rates in response to more favourable conditions, making homeownership more attainable, especially for first-time buyers previously deterred by high monthly payments or excessively long mortgage terms.

“If current trends persist, the UK housing market could experience a steady rebound, with prices rising moderately in popular areas and hot markets.

“However, affordability concerns may linger, particularly for those on lower incomes or in regions with high living costs.”

Foxtons chief executive Guy Gittins explained that not only has there been an uplift in buyer activity, but we’re also seeing more sellers return to the fold in order to take advantage of growing market momentum with the number of offers being accepted at its highest since 2016.

“This positive start to the year has come despite interest rates remaining at 5.25% and as market sentiment has improved, this has naturally led to a greater degree of positive property price growth.”

He added: “Going forward, we don’t anticipate that the impending general election will dampen this growing market sentiment and we expect further growth will materialise over the summer months as the market continues to heat up, particularly with the possibility of an interest rate cut firmly on the horizon.”

Together director Chris Baguley said that while today’s price rises will add to greater confidence in the market, first time buyers and home movers will still be cautious, preferring to hold out until mortgage rates begin to fall.

“The Bank of England held the base rate at 5.25% for the sixth consecutive time but there is optimism that a cut may come in the summer. This could spell great news for buyers as lower base rates will have a knock-on effect on the rate at which they can secure a mortgage.

“That’s not to say there aren’t those able to take the plunge now and for this group, having quick access to finance could be key to them securing their first home or the property of their dreams.”