"The 'price bounce' recorded by Nationwide in March is another example of the erratic fluctuations we are currently seeing across many of the UK's major house price indices, usually seen at a turning point of the market.
"All indicators suggest that we are now closing in on the bottom for house prices, and murmurings of a recovery are justified. The Assetz House Price Watch an amalgamation of the five major UK house price indices, shows very clearly that overall house prices are no longer falling at any significant level, and if things continue as they are, I expect to see monthly price rises across the board after the summer.
"Investor behaviour is the best early indicator of market recovery, and we are now seeing a dramatic shift in sentiment. As early as November we warned investors that distressed house prices were reaching their lowest point, which was the first sign of the market reaching the bottom. Savvy cash buyers have been purchasing in volume since then, and we are now suddenly seeing an influx of anxious investors, worried that they may have already missed the best opportunity to enter the market.
"The next big phase will be a trend of anxious first-time buyers, and the removal of 100% mortgages will not be a stumbling block to this. Two years ago the average first-time buyer put down a 10% deposit, and there are signs that parents are willing to subsidise deposits if required."
