House prices bounced back from a fall in April to rise 0.5% in May, according to the new Halifax house price index.
Following a 2.4% drop during the previous month, house prices in the UK rose slightly to £160,941 in May. This figure is marginally down on the previous year but constitutes the smallest yearly decline in house prices since October 2010.
The Halifax also released quarterly data, with house prices in the period between March and May recording an 0.8% increase on the preceding three months, the second successive quarterly rise.
Martin Ellis, housing economist at Halifax, said: "House prices in the three months to May were 0.8% higher than in the previous quarter, marking the second successive increase in this measure of the underlying trend. The more volatile monthly figures showed a 0.5% rise in May following April's 2.3% decline.
"Whilst there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year.