The Halifax reported an improved property market after announcing that house prices rose by 2.6 per cent rise in May.

Similarly improving house prices have been reported by Nationwide, Hometrack and the Royal Institute of Chartered Surveyors this month.

The Halifax is therefore confident that the housing market is beginning to stabilise, although it cautions against: "It is always important not to place too much weight no any one month's figures," says Nitesh Patel, a housing economist at the Halifax.

"Historically, house prices have not moved in the same direction month after month even during a pronounced downturn - 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."

But despite this caution, it is not difficult to spot some relief at the Halifax that the worse could be over following 18 months of near mayhem in the market.

For example, it points out that although the underlying trend is still down with prices on average expected to drop by 16.3 per cent this year the rate of decline is slowing and price drops are now running at approximately half that of a year ago.