House prices in Britain were little changed last month after five months of decline as new buying interest emerged due to a post-Iraq war revival and lower interest rates, a key report says.
The Royal Institute of Chartered Surveyors (RICS) said today a balance of 2 per cent of its members saw house prices decline in the three months to the end of July - a sharp improvement on the -13 per cent figure recorded for June.
Prices were still rising strongly in the north of England, although less rapidly than before, it said, while prices in London and the southeast were still falling, but also less rapidly than before.
The housing market is a key indicator of consumer spending and confidence in a country where two-thirds of people own their home.
The survey echoes others from major mortgage lenders that have suggested some life may be returning to the market after a period of stagnation .
The Bank of England has cut interest rates several times in recent years to boost consumer spending at a time when the manufacturing sector was in recession. Now rates are at a 48-year low of 3.5 per cent, with the most recent rate cut coming last month.