E.surv has reported that confidence appears to be slowly returning to the UK housing market.

Its February house price report found that 74 authorities saw rising prices over the month.

However, the annual change is still negative at -3.1% despite the monthly increase of 0.1%.

E.surv said that the average house price in England and Wales is now £361,368.

Richard Sexton (pictured), director at e.surv, said: “Our analysis this month shows that the average sale price of completed home transactions using cash and/or mortgages rose by just over £200 – or 0.1% – to £361,368, and is now at a level first seen in February 2022. It is also evident that the average price has hovered around the £361,000 mark for the last four months.

“While the movement is muted when we look at March’s performance, there are reports of a market in slow recovery. Certainly the balance of purchase against re-financing appears to be changing.

“Our view is that the modest turn in fortune is in large part a result of solid wage growth and a belief that interest rates will ease over the coming months, and this is underpinning growing confidence. The chronic undersupply continues to support prices but there are now more products available to buyers than there have been for some months.

“Ultimately affordability pressures are expected to ease but buyers cannot afford to throw caution to the wind.

“Looking forward, we saw little to no help for the housing market in March’s budget, but in advance of a possible winter General Election, we may see another ‘fiscal’ event that may give some further impetus to home buyers.”