House market stagnates

House prices remained level in January, online estate agent Rightmove has said.

14:31 17 January 2005

Online estate agent Rightmove said that house prices remained level in January, which suggests that buyers believe interest rates have peaked.

In the four weeks up to January 8th, the average price of a home fell by 0.1 per cent to 189,509, after a 0.3 per cent decline in the preceding month.

It represents the third monthly fall in a row and fifth in the last six months as the property market adjusts after a period of rapid inflation.

However, Miles Shipside, commercial director of Rightmove, believes that this reduced fall could signal the start of a recovery.

"Properties marketed at the right price are attracting buyers interest and are being sold," he stated.

"I think we can expect to see a pick-up in sales activity. This would undoubtedly give the market a new breath of confidence."

Interest rates were increased five times in the ten months up to last August as the Bank of England aimed to cool the inflationary market down.