House prices stabilising

Commenting on today's House Price Index from Communities and Local Government (CLG) , RICS chief economist Simon Rubinsohn says: "Data released this morning by CLG provides further evidence that house prices appear to be stabilising. The May figures show that prices across the UK were essentially unchanged compared with April. Month on month, prices actually rose in Scotland and Wales, fell slightly in England and more so in Northern Ireland.

"The flatter trend in prices signalled by this report follows the lead provided by the monthly RICS' survey which showed price expectations amongst surveyors turning positive for the first-time since May 2007. Significantly, the lack of new instructions of property to agents is providing a key element of support for the market. This has helped to push the RICS' Sales to Stock ratio, a leading indicator of the demand supply balance in the housing market, higher for six consecutive months. It still, however, remains at a historically low level which warrants some caution about just how sustainable any improvement in the pricing climate is likely to prove."