The statistics show that house prices fell only 0.3% in the month but did not provide a significant update on transaction levels, as data for March and April is not yet available.

The Land Registry pointed out instead that transaction levels averaged 31,315 per month from last November to this February inclusive – compared with the 75,374 monthly average for the same period the previous year.

Nick Leeming, director of propertyfinder, however drew his own conclusions: “The Land Registry provides further evidence that the housing market rot is stopping. Price falls are slowing and transactions have begun to recover from their lows. The data comes out rather late, so current conditions are likely to be more positive still. In London, where interest from buyers has recovered fastest, house prices bounced back strongest in April.

“London often leads the way, so good news in the capital is good news for everyone. Confidence in the housing market is at its highest since the credit crunch began and, although the road to recovery may be long, it seems the worst is behind us.”

But David Brown, commercial director at LSL Property Services, said: “House prices are being supported by the severe lack of property on the market and interest from buyers with substantial capital to put behind their purchase.

“Although a slower rate of decline is positive, it’s much too soon to crack open the champagne.

“The mortgage market remains dramatically down on historical levels and cash buyers aren’t a sustainable source of demand for property. Frustrated borrowers are relying on rented homes, but there’s no finance for landlords to buy property either. Specialist lenders are excluded from government assistance but they have traditionally provided landlords with mortgage funding.”