House prices surprisingly bounced by 0.9% in March, according to the Nationwide.

House purchase activity has now reached its highest level since May 2008, bringing the typical value of a house to £150,946.

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said: "While the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached. The Bank of England has already taken strong measures to ease the tensions in economic and financial markets by cutting rates and commencing quantitative easing. However it will take time for these to work through into the housing market before we can expect a sustained recovery in house prices."

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Also, in February monthly mortgage approvals also increased to 37,900, its highest level since May 2008.

(CD/JM)