UK house prices have risen by 2.6% in May, according to the latest survey by the Halifax.

According to the Halifax house price index published today (4 June), UK house prices rose by 2.6% in May compared with April.

This month’s rise in house prices follows three successive months of falls in prices. The annual rate of decline has now eased to 16.3% in May from the 17.7% in April.

A house in the UK is now worth an average of £158,565.

Despite the increase, the Halifax warned of placing too much importance on the results from just one month. Halifax stated that “historically, house prices have not moved in the same direction month after month even during a pronounced downturn.”

A comparison of the prices in the last three months with the previous three months is generally considered to be a better indicator of the underlying trend in the housing market. The prices of houses in the UK fell by 3.1% in this quarter. Halifax stated that “the rate of decline on this measure has slowed, from the 5-6% recorded consistently between June 2008 and January 2009.”

Nitesh Patel, Halifax Housing Economist, said: “There are some tentative indications of a possible stabilisation in activity, albeit at a low level.”

However he added: “House sales remain substantially below their long-term average and market conditions are expected to remain difficult with housing activity continuing at low levels over the coming months.”

Mortgage approvals have also increased with affordability improving each month. The house price to earnings ratio has declined from a peak of 5.84 in July 2007 to 4.36 in May 2009 and interest rates are lower.

The number of first-time buyers still remains very low, despite the improvements in affordability. In March 2009, there were only 12,500 first-time buyers – almost one third lower than a year earlier.