UK house prices rose by 2.6% in May compared with April but activity remains low in the market, according to the latest survey from the Halifax. The lender, now part of the Lloyds Banking Group, warned against placing too much weight on one month's figures.The rise came after three successive months of property price falls.

The annual rate of decline has now eased to 16.3% from 1.7% in April. The average UK home now costs £158,565, the figures showed. Prices in the last three months compared with the previous three months are generally regarded as a less volatile measure of the housing market. Between June 2008 and January 2009, this three-month figure showed consistent declines of between 5% and 6%. However, prices fell by 3.1% in the quarter to May compared with the previous three months.

The Halifax suggested that there were tenative indications of a possible stabilisation in activity, ableit at a low level.