House prices went up during April following seven months going in the other direction, according to figures from Nationwide.
It is a sign that more mortgages are being taken and is a boost to the market.
Nationwide said that prices rose by half a per cent compared with the previous month – March.
Year-on-year the rate of decline also slowed, dropping to 2.7 per cent from 3.1 per cent.
Halifax’s figures actually showed house price increases in February, by 1.2 per cent, and March, by 0.8 per cent.
The lenders use different measures but together they show the housing market picking up.
Nationwide said the average house price stood at £260,441 in April.
Nationwide chief economist Robert Gardner said: “Recent Bank of England data suggests that housing market activity remained subdued in the opening months of 2023, with the number of mortgages approved for house purchase in February nearly 40 per cent below the level prevailing a year ago, and around a third lower than pre-pandemic levels.
“However, in recent months industry data on mortgage applications point to signs of a pickup.
“This also chimes with the recent shifts in consumer sentiment.
“While confidence remains subdued by historic standards, people’s views of their own financial position over the next twelve months, and general economic conditions in the year ahead, have both improved markedly in recent months.
“If inflation falls sharply in the second half of the year, as most analysts expect, this would likely further bolster sentiment, especially if labour market conditions remain strong.”
Mike Bradley, a senior broker at Home Owners Advice, said: “These figures tally with what we have seen in terms of mortgages issued.
“Essentially we are recovering from Liz Truss’s mini-budget last autumn and this is being reflected in rising house prices.
“Of course there are regional differences but overall the increase in prices and mortgages is a sign of positivity.
“First-time buyers don’t want prices to rise and there is real difficulty with them getting onto the property ladder.”