Positive property news 'may prompt buyers'

The positive news of more mortgages and increased prices may help the property market recover by tempting more people to buy, it has been stated.

Head of mortgages at price comparison site moneysupermarket.com Louise Cuming commented: "Those waiting for the market to bottom out before making a move may now feel that [the] time has come."

She added that the news may consequently "prove the catalyst" that kick-starts a large increase in mortgage activity.

Ms Cuming made the comments after news that Nationwide had recorded a 0.9 per cent rise in prices in March, while recent Bank of England figures showed that mortgage lending increased in February.

Data from Halifax today appeared to contradict the Nationwide findings, showing a 1.9 per cent drop in prices in March.

However, this represented a reduction in the rate of decline compared to February, when the drop was 2.3 per cent, while the quarterly drop of 2.7 per cent was less than the five to six per cent seen in previous three-month periods.