A growing band of investors is betting that a recovery in the housing market is in the offing and has been ploughing its money into residential property funds.
Optimism about bricks and mortar has been in short supply over the past year as house prices have plummeted. But bullish commentators claim there are increasing signs that the ailing market is awakening.
Halifax reports that house prices rose by 2.6 per cent in May, the first increase in four months and the biggest jump since October 2002.
A separate, closely watched survey, from the Land Registry, shows that prices fell by only 0.3 per cent in April, the lowest monthly fall in a year. Adding to the more positive mood, Nationwide Building Society’s index for May