The latest statistics from all the major housing market indices have shown that house prices have hit the bottom and are now actually starting to increase in value once again, according to research conducted by Assetz.

The figures show that prices reached their lowest point between April and May this year, but the figures for May show a significant increase in the average price of a new home, with an annualised growth rate of 17.3 per cent and although it is still early days to start getting excited about recovery and growth, it is the first time in a while since the downward trend has been reversed.

The two main hurdles left facing potential homebuyers are raising a sufficient deposit to meet lenders’ loan to value restrictions and obtaining the necessary funding to make the purchase through a suitable mortgage or homeowner loan. The majority of potential buyers are now realising that they need a much larger deposit than they did previously and many have saved adequately over the past twelve months or so to raise the necessary funds and so this is becoming less of a problem, but with banks and building societies still looking for reasons not to offer a loan rather than trying to help borrowers, obtaining a suitable loan is still a challenge for many.

Stuart Law of Assetz said “All indicators now suggest that we have passed the bottom of the house price curve. While we can’t read too much into one set of figures alone, all the major indices and the recent RICS survey are all indicating an end to falling prices and an increase in activity.

Extreme supply limitations and the recent introduction of some interesting new first time buyer mortgage products will help support market recovery and it is likely that we will see a flurry of higher loan to value rates released as soon as it is widely recognised that the market has stabilised and the risk to the banking sector of further housing equity losses has diminished.”