The average house price rose by 1.2 per cent in May, according to new figures released today by Nationwide, bringing it to £154,016.
This represents only the second rise in the past 12 months, and slows the annual rate of decline to 11.3 per cent from 15 per cent.
Many analysts suggest that the latest figures give credence to the views of those who say the measures instituted by the government and Bank of England are having a positive effect.
But Nationwide chief economist Martin Gahbauer warned that "it is still to early to say the market is turning definitely."
Mr Gahbauer also pointed out that prices had in part been pushed down by excess stock. But now householders are choosing to hold onto their properties rather than sell them at a loss, leading to some stabilisation of prices.
This could lead to either a boom in prices as lending resumes and outstrips supply, or a further depression as householders put stock back into the market at a rate faster than it can be absorbed.