The UK housing market is showing early signs of recovery after nearly two years of falling property values.

New data from major estate agencies indicates that average house prices have stopped declining, with some regions experiencing small monthly increases for the first time since 2024.

Lower mortgage rates and improved buyer confidence are believed to be key factors behind the stabilisation.

First-time buyers, who were largely priced out during the peak of interest rate hikes, are slowly returning to the market as lenders offer more competitive deals.

Property experts caution that a full recovery may take time, particularly in large cities where affordability remains a challenge.

Nevertheless, the slowdown in price drops has reassured homeowners concerned about negative equity and long-term investments.