House prices rise in January

The number of homes sold in the UK jumped by 40% in March from the previous month, according to figures from HM Revenue & Customs (HMRC).

There were 60,000 property sales worth at least £40,000 each, compared with 43,000 in February.

The figures suggest that the slump in home sales seen in the past 18 months may be coming to an end.

Even when the figures are adjusted for seasonal trends, they still show a rise from 54,000 to 61,000, a jump of 13%.

The data is in line with other figures from the Bank of England, which showed that mortgage approvals rose significantly in February after stagnating for six months.

And surveyors have reported a steady rise in the number of enquiries at estate agents from potential home buyers during the past five months.

House prices in England and Wales have risen month-on-month for the first time since January 2008, according to the Land Registry.

The 0.1% rise in June compared with May brought the value of the average home to £153,046, the survey found.

It said that the figures revealed a "flattening" of prices, although the value of the average home was down 14% on the same month a year earlier.

The survey compares the price of homes sold now with the price paid before.

"This is the first time in well over a year that the monthly change has been positive," the Land Registry survey said.

House prices in England will fall this year and next before recovering, the National Housing Federation forecasts.

It expects prices to fall 12.2% in 2009 and 4.6% next year, before stabilising in 2011 with a 1.1% rise and continuing to climb in the following years.

It predicts that, by 2014, house prices will be 20% higher than current values.

But the group, which represents housing associations, said English homeowners who bought at the market peak could be in negative equity for five years.

Although five-year forecasts can be unreliable, the group said that not enough homes were being built.

The number of mortgages for homebuyers granted in June rose by 23% compared with May, according to UK lenders.

Some 45,000 home loans were granted for house purchases - just 6% lower than the same month the previous year, the Council of Mortgage Lenders (CML) said.

The group said the mortgage market had stabilised, although this was far from a return to the housing boom.

First-time buyers were still being squeezed, as they required an average deposit of 25% of a home's value.

The average house purchase loan rose from £105,000 in March to £111,000 in June, signalling the recent increase in the typical house price.